The modern drug discovery process involves multiple stages including target identification, target validation, lead discovery, lead optimization, pre-clinical development, and clinical development, with each step aimed at identifying and developing compounds that can effectively treat diseases. This process is complex and costly, with expenditures averaging between $897 million and $1.9 billion per drug developed. Key components of drug development include understanding drug targets, optimizing leads, and conducting various trials to ensure therapeutic efficacy and safety.