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Drug action is the mechanism by which drug exerts its effects (i.e. the way it acts in the body to produce its effects).

Drug response is the improvement or effect observed when the drug is administered.

Drug effect is the improvement (or the portion thereof) due to the physiological mechanism itself. The drug effect is calculated by subtracting the placebo arm from the drug arm of a randomized controlled trial (RCT). In other words, drug response - placebo response = drug effect.

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