INDUSTRY-BY-INDUSTRY OUTLOOK : The Year in Preview

California came several years late to the nation’s economic recovery party, but the state should be celebrating all through 1997.

Here is what key industries will be up to:

DRUGS & BIOTECH: As managed-care companies continue to put pressure on drug prices, the consolidation of drug makers will likely continue. Also look for drug companies to outsource more of their new drug research activities. One big question: As David Kessler departs the U.S. Food and Drug Administration, what will that mean for government policies related to speedy approval of new drugs?