The document discusses the process of new drug discovery and development. It begins with definitions of key terms like drug, discovery phase, and development phase. It then describes the various stages of drug discovery and development, including target identification, lead identification, lead optimization, preclinical testing, clinical trials, and regulatory approval. The process takes 12-15 years and costs $900 million to $2 billion on average due to the need to test thousands of potential drug candidates. Characterization, formulation, preclinical safety testing, and clinical trials are described as important steps to develop a new drug for patients.