This book employs the tools of economic analysis to explore the conflicting priorities and aims of the pharmaceutical industry, from both a U.S. and worldwide perspective. Schweitzer discusses the industry both as a manufacturer of products and as a major player in the making of health-care decisions. He also analyzes the reasons for and results of the shift in the locus of demand for pharmaceuticals. At present, the demand of large managed-care organizations are more important than those of individual physicians in formulating the future direction of pharmaceutical research. HMOs make decisions about product access on behalf of hundreds of thousands of patients. 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.

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. It provides the first comprehensive look at the economics of the pharmaceutical industry in over 25 years. Readable and balanced, it will serve as an authoritative source of information for students and researchers in health services, health administration, health economics and policy, as well as for policy analysis and economists in industry, managed care organizations, and hospitals.