Phase II clinical trials are a crucial stage in the drug development process, focusing on evaluating the efficacy and side effects of a drug after it has passed initial safety assessments in Phase I. These trials involve a larger group of participants than Phase I, typically ranging from 100 to 300 subjects, and are designed to gather more detailed information on how well the drug works for its intended purpose while continuing to monitor safety. This phase is essential in determining whether a drug should proceed to more extensive testing in Phase III, where it is compared against standard treatments.