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"The pharmaceutical industry is praised as a leader in high technology innovation and the creator of products that increase both longevity and quality of life for people throughout the world. Yet the industry is also reviled for its marketing and pricing practices and even its research and development priorities. 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. This second edition includes six new chapters on emerging topics such as the broadened role of FDA regulations, alternative drugs or "nutraceuticals," and biotechnology and other industries related to pharmaceuticals. Existing chapters are fully revised and updated to include new materials. The introduction is also updated to address the volatile pace of pharmaceutical innovation and how the pharmaceutical industry has responded to the emergence of managed care. "