Thalidomide: From Tragedy to Treatment | Retro Report

Examine the case of thalidomide to see how the goals and responsibilities of government regulators and private companies can align or differ, using evidence and economic reasoning.

Thalidomide, introduced in the 1950s as a sedative and treatment for morning sickness, led to severe birth defects before its risks were fully understood. In the United States, stricter oversight by the Food and Drug Administration limited the drug’s impact compared with other countries. Today, thalidomide derivatives are still prescribed for certain conditions, while rising prescription drug costs continue to draw public attention. This lesson examines the relationship between pharmaceutical companies and government regulators and explores how price controls might influence the cost of prescription medications.