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Toxicity is an extent to which a particular substance can damage the living organism; it is important parameter to be evaluated during all stages of drug development. Toxicity is one of the major reasons for failure of drug development and rejection of drug candidate. Toxicity can be because of dosage, form, half life and other parameters of drug. Since long time toxicity is measured at the later stage of the drug development process but considering higher rejection rate of drug in recent years citing high toxicity level and cost impact of later stage failure, companies started early toxicity testing and taken measures accordingly to reduce the attrition rate in drug discovery.