The general approach is as follows. There are sometimes other ways, and it matters whether the study drug is (say) a diagnostic or a therapeutic.
Phase 1: Healthy volunteers. You want to see that the drug is well tolerated. You don’t want the confounding factor of sick people (75% of our stage 4 cancer patients died. Is it because of the drug or the cancer?). You want to check safety and get some sense of dosing, at what amount of drug you see pharmacalogic effects, side effects, etc. Phase 1, to my experience, is always open label (again, you might find some oddballs out there)
Phase 2 is where you start looking at the impact on the disease state. Here is also where you may look at cohorts to determine how much is the right amount. You’re continuing to establish safety. Generally P1 and P2 can be quite small, but again, the statisticians have to determine how many people you need (true for all phases). If you have an illness terminal 100% of the time, the number of subjects to show effectiveness of the drug will be smaller. If you want to add 6 months life to a chronic illness people live with for two decades, you’ll need a fuckton of people; I am NOT a statistician so take that as an overview of the idea, not an actual example)
Phase 3 is where you prove that this drug, administered according to this label, has the intended effect. Ideally it’s double-blind and includes a placebo. But again, that’s not always possible (you are never going to give someone a radioactive placebo, for instance, and if you remove the radioactivity to make the placebo, everyone will know it’s the placebo). The study will have defined endpoints that establish what is a success in advance.
IRBs really just make sure that a study is in alignment with the institution’s safety standards and protocols. They can ask for some changes (like, I want the subjects to have their blood pressure checked prior to enrollment) but they DO NOT define the study. They can, of course, decline to allow participation.
Broad overview. Lots of exceptions. Different areas of pharma operate differently (ie, therapeutic vs diagnostic). I’ve even seen where a diagnostic was brought to market without a trial. In that case, it had been studied academically for years and someone was able to collate all that data and submit- but that’s not normal.