A drug composition comprising a coated bead is used in the manufacture ofimmediate release and/or controlledrelease drug compositions. In a specific embodiment, the bead includes aninert core of a water-soluble or water-swellable material,which has been coated with a seal layer formed from a non-polymerichydrophobic material. The immediate and/or controlled releasebeads may be used to form tablets or capsules. A method of making the beads bysequential deposition of multiple layers on theinert cores is also described.