Penicillamine acts as a chelating agent by binding to metals such as copper and lead, forming soluble complexes that are excreted renally. In rheumatoid arthritis, it exerts immunomodulatory effects by suppressing T-cell function and decreasing rheumatoid factor synthesis, thus reducing inflammation and joint damage. In cystinuria, penicillamine forms mixed disulfides with cystine, increasing its solubility and preventing stone formation.