I personally don't like many modern werewolf novels because they go the route Anne Rice did with vampires and usually present the werewolf in a fantasy setting instead of horror. For books that retain the horror element, check out Nightwalker by a guy whose name I forget, Mercheston by David Holland, and Animals by splatterpuck duo Skipp and Spector.
Unfortunately there is no literary equivelant of Dracula for the werewolf, but the closest would be Guy Endore's novel from the twenties, The Werewolf of Paris. It's well worth seeking out, and pretty much introduces the all the lore we take for granted. He was also an accomplished screenwriter, helming Lugosi's Mark Of The Vampire and the great Peter Lorre movie Mad Love among others.
Hope that helps.
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