What is the difference between the measurement of potency in drug development, specifically in terms of comparing KD vs IC50 values?

In drug development, potency is a measure of how effective a drug is at producing a biological response. KD value represents the equilibrium dissociation constant, which measures the binding affinity between a drug and its target. IC50 value represents the concentration of a drug needed to inhibit 50 of the target's activity. KD values indicate the strength of the drug-target interaction, while IC50 values indicate the drug's effectiveness at inhibiting the target.