Overview
In the 1960s the drug thalidomide was used by some pregnant women in Europe and Canada to treat morning sickness. Women who took the drug in early pregnancy gave birth to children with severe birth defects such as missing or shortened limbs. Shortly after the birth defects were observed, thalidomide was banned worldwide.
http://cerhr.niehs.nih.gov/genpub/topics/thalidomide2-ccae.html
It is supposedly making a comeback as a possible cancer drug.