The research was conducted by a committee in the Institute of Medicine. Information was collected from meetings with representatives of the Institute of Medicine Drug Forum, the pharmaceutical industry, and three Federal agencies; a survey of the pharmaceutical industry; and a Workshop on Policies to Stimulate Private Sector Development of Anti-addiction Medications. The results of the committee's deliberations, meetings, and workshop revealed that the major disincentives to pharmaceutical research and development for anti-addiction medication include an inadequate science base on addition and the prevention of relapse, especially for cocaine, and an uncertain market. Specific issues include treatment financing, the lack of trained specialists for the treatment of drug addiction, Federal and State regulations, market size, pricing issues, societal stigma, liability issues, difficulties in conducting clinical research, and a lack of sustained Federal leadership. The committee made many recommendations to remove these disincentives through administrative actions; to create modest incentives; and to have Congress and the executive branch consider two extraordinary incentives: Federal subsidies and Federal purchase orders. Figures, tables, chapter reference lists, and appended background information