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My friend also brought up an argument that people are going to want the most powerful drug available, and if someone dies because they were given a "second rate" drug (one that isn't touted as the best defense) they will sue.

I feel that some of these first rate drugs are the kind you described; they are lifelong treatments with side-effects which are treated by other drugs. It would seem that if, for example, a 5$ drug with a 49% effectiveness could substitute a 100$ drug with a 52% chance, and nobody could be allowed to sue if effectiveness falls in the crack, things would be much better.
What are your thoughts?