Pharmaceutical degradation can occur through physical, chemical, or microbiological processes. Physical degradation includes changes in appearance, properties like hardness or consistency, and polymorphic changes. Chemical degradation involves reactions like hydrolysis, oxidation, decarboxylation, isomerization, and polymerization that break down the drug. Microbial degradation is caused by microbial growth contaminating the product. Proper storage conditions and formulation design can help prevent degradation through control of factors like temperature, humidity, light exposure, and microbial contamination.