We investigated the in vivo action of the newly developed anti-rheumatic agent tenidap, CP-66,248 (Pfizer Inc., New York), on arthritis in collagen-induced arthritic mice. The inhibitory effect of tenidap on the development of arthritis was statistically more significant than piroxicam. The serum anti-type II collagen antibody titer was markedly inhibited in the mice treated by tenidap. These results suggest that, unlike NSAIDs, tenidap inhibits the progress of collagen-induced arthritis through its immunomodulating effect.