After Gene's health took him away from TNG and his successors shelved the script, Gerrold turned it into a non-Trek novel. If you enjoy the episode, you may want to check out the novel as well. It's the third book in his "Tales of the Star Wolf" trilogy, titled (of course), "Blood and Fire".
My understanding is that the script was turned down while Roddenberry was still active in the production of TNG.
But, I second your recommendation of the "Star Wolf" books, which are excellent reading.