Cultured cells, prepared from the transplantable rat prolactin (rPRL)-secreting rat pituitary tumor 7315b were found to be inhibited in a dose-dependent way in their cell growth and hormone secretion by the somatostatin analogue SMS 201-995 (Sandostatin). In short-term (1 week) experiments these effects were not time dependent and of similar magnitude (an inhibition of approximately 50% at 100 nM SMA 201-995) both for the rate of rPRL secretion and for the rate of incorporation of tritiated thymidine into the tumor cells. When freshly isolated 7315b cells were used for long-term experiments (38 days), continuous exposure to SMS 201-995 at all concentrations tested (0.1 nM, 10 nM, and 1 microM) resulted in desensitization of the cells to the peptide with respect to rPRL secretion. Using a stable cell line derived from the long-term experiment and designated 7315c, we show that (a) long-term exposure of 7315c cells to SMS 201-995 leads to loss of sensitivity with respect to both rPRL secretion and cell growth, (b) this loss of sensitivity is accompanied by complete disappearance of the somatostatin receptors from the cells, (c) withdrawal of treatment from desensitized cells leads to reappearance of receptors and of sensitivity to SMS 201-995, showing that selection for a non-receptor-bearing population was not the cause of desensitization, and (d) since these experiments were carried out with a pure population of 7315c cells the effects of SMS 201-995 are direct effects on these cells and not effects mediated by other cell or organ systems.