Laquinimod (ABR-215062) is a potent immunomodulator. Laquinimod is a novel oral drug that is currently being evaluated for the treatment of relapsing-remitting (RR) multiple sclerosis (MS). Laquinimod has demonstrated significant activity in suppressing experimental autoimmune encephalomyelitis, an animal model of RRMS. In phase I and II clinical trials, the drug was well tolerated, with some hints of efficacy in small numbers of patients with RRMS. While the mechanism of action of the drug is unknown, it likely involves Th1 to Th2/Th3 immune deviation, promotion of the synthesis and release of neurotrophic factors, and other possible neuroprotective effects. A Phase II study of Laquinimod in active lupus arthritis patients is currently ongoing, if successful, will lead to the approval of the first oral immunomodulatory drug for suppressing multiple sclerosis disease activity.