Abstract. The pharmacological profile of (S)7(2{2[(E)2cyclopentylvinyl]5methyloxazol 4yl}ethoxy)2[(2E,4E)hexadienoyl]1,2,3,4tetrahydroisoquinoline3carboxylic acid (KY201), a peroxisome proliferatoractivated receptor (PPAR) g agonist, was compared with that of rosiglitazone in ovariectomized rats. The serum triglyceride and nonesterified fatty acid reducing effects of KY201 at 3 and 10 mg/kg per day for 6 weeks were similar to those of rosiglitazone despite its weaker PPARg agonistic activity. KY201 had no effects on body weight gain, blood volume, or heart and adipose weights, while rosiglitazone at 10 mg/kg per day increased them. KY201 had few effects on bone mineral density (BMD) or fat in marrow (FM), whereas rosiglitazone strongly decreased BMD and increased FM. The PPARγ agonistic activity of KY201 was weaker than that of rosiglitazone in ST2 cells, and KY201 reduced osteoblast differentiation and increased adipocyte differentiation less potently than rosiglitazone in rat bone marrowderived mesenchymal stem cells. KY201, but not rosiglitazone inhibited protein tyrosine phosphatase 1B (PTP1B) and increased phosphorylation of the insulin receptor in HepG2 cells. These results suggest that the hypolipidemic effects of KY201 are similar to those of rosiglitazone, but with less adverse effects, due to the combination of PPARg partial activation and PTP1B inhibition. KY201 would be useful for treatments of diabetic patients at high risk of osteoporosis, cardiovascular disease, and/or obesity.