There’s a difference, I should note, between something actually being actively banned and it being not yet tested/not yet approved. The former indicates that the drug had no effect or actually had harm, after being tested.
I haven’t seen the film, but according to Wikipedia article, it has onlyeffectiveness in only certain cases - when symptoms haven’t yet developed - thus far, and active testing is underway. (Another link in the article notes that Lorenzo wasn’t getting better and many children taking the oil died, contrary to the rosy ending of the movie.)
I am a voting member on a human subjects protection committee at the medical center I work at. There are exceptions for drugs/devices that are experimental to allow them to be used on patients who are not involved in research studies. IIRC (it’s been a while so my memory is fuzzy on the details) I believe one of the cases that came before our committee involved a drug not yet approved in the US. The parents of the child involved obtained the medication legally out of the country, but due to its nature (IV infusion, perhaps?) it had to be administered by a physician. The hospital’s physician who was involved was letting us know he was doing this, and we acknowledged it. (This is a very simplified look at the process, mind you, and only from our viewpoint. I don’t know what the physician had to go through to get to that point.)
Part of the problem with the “just hand out the experimental drugs” impulse is that even people with almost assuredly fatal illnesses also deserve protection against unnecessary harm. In fact, those people are among the most vulnerable to manipulation, due to their desperation. I do know that medical necessity is taken into consideration when new studies are being reviewed, though - if the drug is for something more mundane, there is less of a tolerance for risk than if the condition is something that is almost assuredly fatal and/or if there are no decent alternative therapies. Patients must still be fully informed of what they’re getting into, however.
On a side note: if I understand correctly, thalidomide is currently used in the US for prevention of a disease associated with leprosy, as well as being used “off-label” (i.e., not FDA-approved for, but is regardless prescribed by doctors) for multiple myeloma and for esophageal ulcers associated with HIV.