We have cloned the cDNAs of both human and mouse TNF and expressed them to high efficiency in Escherichia coli. Many transformed cell lines are sensitive to the cytotoxic action of TNF, especially in the presence of gamma-interferon, whereas normal cells either are unaffected or respond mitogenically. A number of human-mouse chimeric TNF genes have been constructed and expressed. All show biological activity but none of the chimeric proteins is neutralized by monoclonal antibodies to TNF. TNF has potent antitumour activity in nude mice carrying human xenografts or in mice bearing syngeneic tumours. In some systems direct effects can be demonstrated (in combination with species-specific gamma-interferon) but in others TNF acts indirectly. Combination of TNF with cytostatic drugs can also be effective in curing in vivo. The major limitation of the use of TNF is its toxicity. On many cell types TNF has an action similar to interleukin 1 (IL-1). At least some of the secondary, intracellular events may be identical for the two effectors. A possible mechanism of action of TNF is the release and metabolism of polyunsaturated fatty acids, which would explain the synthesis of prostaglandins and leukotrienes by many cell types after TNF treatment. The activation of the phospholipase can be blocked by corticoids. Some protease inhibitors protect cells from TNF-induced cytotoxicity but the target of these inhibitors has not been identified. Several genes are switched on by TNF (and by IL-1), including the gene for the 26 kDa protein recently identified as B cell stimulation factor 2. Events preceding death in rats include hypothermia, hypotension, acidosis and hypoglycaemia. All these effects can be largely eliminated by indomethacin pretreatment, with a resulting improvement in survival. As indomethacin does not inhibit the cytotoxic action of TNF on malignant cells it may form the basis for improved treatment protocols.