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Unfortunately, many of the critics of the industry fail to understand the complexities of the industry and its role in the nations healthcare system. All the chapters of the former edition have been fully re-written and extensively updated. An entire chapter is devoted to the biotechnology industry and one to alternative medicines, often called "nutraceuticals. Its competitive nature is undergoing change today, with the entry of new firms and products increasing competition at the same time that mergers reduce it. This book employs the tools of economic analysis to explore the conflicting priorities and aims of the pharmaceutical industry, from both a US and worldwide perspective. In addition, the book includes six new chapters on emerging topics such as the broadened role of FDA regulations and the increasing diversity of the industry. Recent changes in the regulatory environment--including patent law and FDA approval policies--have also influenced the pharmaceutical sector and are therefore investigated in detail. Even its research and development priorities are criticized as being too closely driven by the goal of maximizing shareholder value, rather than the health of the public. HMOs make decisions about product access on behalf of hundreds of thousands of patients. At the same time, the industry is also criticized for its marketing and pricing practices and for its apparent anticompetitive responses to generic competition. This book uses the tools of economic analysis to explore the conflicting priorities and aims of the pharmaceutical industry, from both an American and worldwide perspective. Pharmaceutical Economics and Policy provides an insightful and expert analysis of this complex sector, and suggests appropriate regulatory approaches to assure that both private and public objectives continue to be served. Schweitzer discusses the industry both as a manufacturer of products and as a major player in the making of health-care decisions. Readable and balanced, it will serve as an authoritative reference source for students and researchers in health services, health administration, health economics and policy, as well as for policy analysts and economists in industry, managed care organizations, and hospitals. The recent controversial expansion of Medicare to cover outpatient drugs is discussed in depth. This is the second edition of a uniquely comprehensive and balanced discussion of pharmaceutical policy issues. Presently the most important factor in formulating the future direction of pharmaceutical research are the demands of the large managed-care organizations rather than individual physicians. Persex

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