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Spherical agglomeration techniques were developed for improving the flow and compressibility characteristics of microcrystalline mefenamic acid and nabumetone. The process involved agglomerating microcrystals using agglomerating solvents. Temperature and speed of agitation were optimized to obtain spherical agglomerates in a desired range, which was found to be essential to enhance compressibility. Incorporation of polymer HPMC during agglomeration significantly enhanced the dissolution rate of mefenamic acid while incorporation of solubilizing agent lecithin improved the solubility of nabumetone. Thus, spherical agglomeration is an important technique for improving direct compressibility of pharmaceutical powders and is especially useful when the drug dosage is high.