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More than 40% of new chemicals are of poor solubility, it causes poor bioavailability. Several techniques are available to increase the solubility of drugs, such as converting the drug into salt form, complexion, co-solvency, particle size reduction, nano-suspension, cryogenic technique, modification of crystal habit etc. Hot melt extrusion has increased wide acknowledgment in the recent past. Over the past recent three decades modern flexibility has permitted hot melt extrusion (HME) is to increase wide acknowledgment and has just settled its place in the wide range of assembling activities and pharmaceutical research advancements. HME has just been exhibited as a vigorous, novel system to cause strong scatterings so as to give time controlled, changed, broadened, and focused on medicate conveyance bringing about improved bioavailability just as taste covering of bitter Active Pharmaceutical Ingredients (APIs). Hot melt extrusion is one of the efficient technique for improving the solubility of hydrophobic drugs by forming solid dispersion. It is a solventfree process and time taken for the production is less. The process involved in this technique include, weighing/feeding, Melting, Mixing, Venting, Extrusion, Cooling, Pelletizing. Solubility of many drugs have improved by utilizing hot melt-extrusion technology. In this review, a detailed overview about Solubility enhancement of drugs by hot-melt extrusion and its applications are discussed. This review summarizes the importance and uses of solid dispersion technique for improving the solubility of poorly soluble drugs
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