The percentage of new chemical entities synthesised with low aqueous solubility and high therapeutic efficacy is growing, this presents major challenges for the drug delivery. For this major challenge, different methods are developed for the improvement of the oral bioavailability, but some have major disadvantages. Recently, oral lipid based formulation is develop for the improvement of the oral bioavailability. Lipid based formulation may improve oral bioavailability via several mechanisms; enhancement of gastrointestinal solubilisation remains argueably the most important method of absorption enhancement. In this review discuss about lipid formulation classification system (LFCS) on the basis of the different types of surfactant like water soluble and water insoluble and different concentration of the excipients, those are generally recognized as safe (GRAS). Various parameters are mention for the evaluation of the lipid based formulation like equilibrium phase behaviour, self dispersion and size dispersions, in vitro dispersion, droplet size and surface charge, in vitro release. In the USA, Japan and other countries, various poorly soluble drugs are commercially available lipid-based formulations for oral administration.
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