I can remember only one incident where testing drugs on people has caused any problems. (A quick google tells me it was TGN1412 – google it yourself.) Despite this, I believe most trials on people pass off without incident. In fact, small scale trials of drugs on people in controlled conditions is essential to ensure that they are safe before they are used on everybody.
I think it is certainly safer than releasing drugs for clinical use that have not been tested on people. But yes, the question of how many and what tests (on people or other organisms) are appropriate is very important, and it has no single answer.
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