"Pharmaceutical company" and "biotech" are terms that investors hear all the time -- but what's the difference? Are they essentially the same thing, or are they two entirely different types of drugmakers?

The answer is more confusing that you may think. In the following video, health care analyst Max Macaluso explains the classic definitions of "pharmaceuticals" and "biotech," and discusses why it's difficult to distinguish the two today.

Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.