Previous studies in vivo provide evidence that extra-ovarian factors, currently unknown but nevertheless present and associated with pregnancy, directly prevent the growth of follicles beyond a diameter of 2 mm during the last trimester of pregnancy in the ewe. In the present study, the effect of charcoal-treated extract from sheep placenta on total aromatase activity, as determined by the conversion of [3H] androstenedione to estradiol and measurement of [3H] water, was investigated using primary culture of human granulosa cells in serum-free medium as a model. Addition of different doses (50, 150, 300 and 600 micrograms protein) of cotyledons extract of day 110 of pregnancy produced a dose-dependent diminution of granulosa cell aromatase activity in the absence of FSH. The maximal inhibition of aromatase activity occurred at a dose of 600 micrograms. These results showed that the cotyledons of late pregnancy contain a non-steroidal factor that inhibits basal aromatase activity in granulosa cells. Extracts prepared from cotyledons of days 90 and 110 of pregnancy but not extracts of days 50 and 70 significantly reduced basal aromatase activity in a dose-dependent manner. These results suggest that the production of the aromatase inhibiting factor increases with the advance of pregnancy. The aromatase inhibiting activity was lost after heating (80 degrees C, 30 min) or after treatment with trypsin (1 mg/ml) of cotyledons extract of day 110 of pregnancy, demonstrating the protein nature of the aromatase inhibiting factor. In conclusion, these experiments demonstrate that ovine placenta contains a heat- and trypsin-sensitive factor likely to be a protein which inhibits granulosa cell aromatase activity.