The development of a new drug is a long, complex, and costly process taking at least 10 years and $500-1000 million. It involves pre-clinical studies in animals, followed by clinical trials in four phases with humans. Phase I establishes safety, Phase II establishes efficacy and side effects, Phase III tests efficacy in larger groups, and Phase IV monitors long-term safety after approval. After successful clinical trials, approval is sought from regulatory authorities like the FDA by submitting a New Drug Application before marketing.