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PPT2 encodes a member of the palmitoyl-protein thioesterase family. The encoded glycosylated lysosomal protein has palmitoyl-CoA hydrolase activity in vitro, but does not hydrolyze palmitate from cysteine residues in proteins. Three transcript variants encoding different isoforms have been described for this gene, with one of the isoforms being inactive. [provided by RefSeq]