01Why this case comes first

When you study drug disasters, Thalidomide (1957–62) and the HIV-tainted-blood disaster (1980s) might come to mind first. But trace the origin of modern pharmaceutical regulation, and you always arrive at this small 1937 case. The death toll, about 107, is dwarfed by later catastrophes. Yet this case was what first established, as a legal principle in the world, that "a new drug must pass prior safety testing before approval" — a premise we now take for granted.

Before this case and after it, what was required to sell a drug changed at the root. We place it first because without grasping that pivot, every subsequent drug disaster loses its meaning.

02Autumn 1937, Tennessee — the trigger

In June 1937, Harold Watkins, chief chemist at S.E. Massengill, set out to develop a new product. Sulfanilamide — then a celebrated breakthrough antibiotic — was to be formulated as a syrup so that children and patients who could not swallow tablets could take it.

Sulfanilamide did not dissolve well in water or in standard alcohols. Watkins searched for a solvent and settled on one liquid: diethylene glycol (DEG). It tasted sweet and dissolved sulfanilamide handsomely. He added raspberry flavoring and coloring, and the product was launched as "Elixir Sulfanilamide".

In September, shipments left the Bristol, Tennessee headquarters for pharmacies and clinics across the United States. With streptococcal infections spreading across the South and Midwest, physicians began prescribing the new syrup to children.

03Diethylene glycol — a poison used "for taste"

Diethylene glycol is widely known today as a poison. Cousin to ethylene glycol (the antifreeze base), it is metabolized in the body into compounds that cause renal-tubular necrosis. A small dose produces acute kidney failure and metabolic acidosis — often fatal.

In 1937, however, DEG's toxicity was not widely known among pharmaceutical companies. Watkins checked only taste and solubility. He ran no animal experiments. The law of the time — the Pure Food and Drugs Act of 1906 — required only that a product be "free of adulteration and labeled truthfully". It did not require manufacturers to test the safety of new ingredients.

The structural blind spot: the 1906 Act was a "fraud-prevention" law. "Safety assurance" was outside its scope. A company could legally launch a new drug without any safety testing — that is the institutional background of this case.

04The chain of harm — 107+ deaths, mostly children

107+confirmed deaths
~240gallons distributed
15states reached
~1 monthlaunch → recall

The first alarms came from children in Tennessee and Oklahoma. Days after taking the syrup, kidneys failed. Severe abdominal pain, anuria, seizures, coma — and death within 7 to 21 days. The American Medical Association (AMA) noticed the pattern and launched an emergency investigation in October 1937.

The AMA analyzed samples, confirmed diethylene glycol, and ran rapid animal experiments showing the causal link to renal failure. The cause was identified about one month after shipment began — by which time dozens were already dead.

The U.S. Food and Drug Administration (FDA), then a small unit within the USDA, visited pharmacies, clinics, and patient homes nationwide, recovering bottles one by one. Of 240 gallons distributed, 234 were retrieved; 6 had already been used. The confirmed death toll reached 107, though the true count was likely higher.

05S.E. Massengill's response — "we broke no law"

The company's reaction is, by modern standards, stunning. Founder Samuel Massengill issued a statement to this effect:

"My company hired a chemist; it manufactured according to accepted methods. We have violated no provision of any law in force. I do not feel I bear personal responsibility for the accident."

Under the law of the time, his claim was essentially correct. The only Pure Food and Drugs Act charge that stuck was the misbranding of the word "Elixir" — a term legally meaning "an ethanol solution"; a diethylene-glycol solution was technically not an "Elixir". The company paid a fine of $26,100. Not "for killing 107 children" — for "mislabeling a product name".

Harold Watkins, the chief chemist, took his own life. The company and the law did not assign him responsibility — but the heaviest burden, perhaps, was his own.

06What the FDA report revealed about the regulatory vacuum

In the aftermath, the FDA submitted a detailed report to Congress. It identified five fundamental gaps:

The report concluded that all of these could be solved only by legislative reform. Massive press coverage drove public outrage, and Congress had no choice but to respond.

07June 1938 — the FDCA changes everything

About nine months after the incident, in June 1938, the Federal Food, Drug, and Cosmetic Act (FDCA) was signed into law. It became the foundation of U.S. FDA regulation as we now know it.

ChangeWhat the FDCA (1938) established
New-drug safety testingMandatory prior animal testing. Manufacturers now bear the burden of proving safety before launch
New-drug approvalFDA pre-market review via the New Drug Application (NDA)
LabelingComprehensive disclosure of ingredients, usage, warnings, contraindications
False advertisingTherapeutic-claim falsification prohibited by law
Expanded FDA authorityInspections, recall orders, criminal referrals
Prescription concept(Completed by the 1951 Durham-Humphrey amendment) Rx vs OTC separation

The FDCA established, for the first time in the world, the modern regulatory skeleton: "a new drug cannot reach the market unless the company proves its safety and the government approves it". That skeleton became the template — even Japan's Pharmaceutical Affairs Act (1948) inherited it.

Without this case: had there been no Elixir Sulfanilamide and no FDCA, structural reform of pharmaceutical regulation might have waited until Thalidomide (1957–62) for the next push. But because the FDCA had already taken root in the U.S., American Thalidomide casualties were kept to about 17 — a dramatic contrast with Europe. The sulfanilamide legacy bore fruit 25 years later.

08Four lessons that still hold

Lesson 1 — "Not illegal" does not guarantee "ethical"

S.E. Massengill did not violate the law of its time. Yet 107 dead children remained. Where the law has not caught up, corporate ethics is tested. The lesson applies today to AI drug discovery, gene therapy, and digital health. In new domains where law lags, autonomous corporate judgment is the last line of defense for the patient.

Lesson 2 — Safety "confirmation" lives on a different layer from taste or solubility

Watkins confirmed taste and solubility. These are necessary steps of "quality control". But toxicity testing must be done on a separate layer (biological testing). "It works as a formulation" and "it is safe to put into a human body" are different problems. In modern drug development, this layer confusion still happens.

Lesson 3 — Regulatory blind spots only get filled after someone dies

The 1906 Pure Food and Drugs Act was designed to prevent fraud and left "safety assurance" outside its scope. That blind spot was filled only at the cost of 107 deaths. Regulation evolves as a response to past tragedy. So when you study a modern regulation, ask which past tragedy it is responding to — that is the meaning of historical study (see Ethics Vol. 3).

Lesson 4 — Separating individual and organizational responsibility

Watkins killed himself. Massengill paid a fine. Individual conscience and organizational responsibility were institutionally disconnected. The problem persists in modern organizational theory. Organizational responsibility being shouldered by individual conscience is precisely what corporate governance and quality-assurance systems are built to prevent. See the Compliance series.

09Connections to other chapters

In closing

In 1937, in a small town in Tennessee, children died. The cause: a toxic solvent used only for taste. The chemist checked taste and solubility but ran no toxicity test. The company broke no law of its time.

The sequence is, by modern sensibilities, unbelievable. But why we now find it unbelievable is itself this case's legacy. The 1938 FDCA, the 1948 Japanese Pharmaceutical Affairs Act, the 1962 Kefauver-Harris amendment (proof of efficacy) — layer upon layer of pharmaceutical regulation built since then is, every line of it, a response to "preventing the 108th death".

People working in pharma today create, advertise, and distribute drugs. Beneath every one of those acts sits a now-invisible premise — "safety must be proven in advance". That premise was established at the cost of the children who died in 1937 and the chemist who took his own life. Only organizations that do not forget history avoid producing the 108th.