Judging by the fungus tainted steroid shots given in 2012 I would say the pharmaceutical industry is not well regulated at all. In defense of major drug stores, I understand the contamination occurred in a "mixing center". Evidently mixing centers were not considered part of the pharmaceutical industry and as such were not inspected, or required to meet the same stringent guidelines. Any manufacturing facility even remotely connected to the industry should be monitored and held to the same rules.
The pharmaceutical industry needs more regulation to make certain that patients are getting access to the best medication for their diseases, not just the medicine that the company will see the most profit from. There is big money involved in this industry, one of the most profitable in the world, and given the profits that companies stand to gain with new drugs in particular, greater regulation is necessary governing the availability of the drugs and how they market them to doctors to make certain that patients are not being put in jeopardy in the name of greater profits.
The pharmaceutical industry in the United States is not appropriately regulated. This is because there are way too many chemicals getting into people's systems -- chemicals that are causing an incredible amount of diseases and side effects. This is why people say about medicines, "Sometimes the disease is worse than the cure."
As far as testing and adding new drugs to the market I believe the pharmaceutical industry in the United States is appropriately regulated. However, I believe the United States government should enforce price controls on this industry to stop these companies from over inflating the prices which leads to inflated health care costs.
The FDA is one of the most poorly-run administrations in all of the United States. The reason big pharma has such a bad wrap is because of the FDA. The FDA blocks a lot of research and doesn't fund the right projects. The regulations are very poor and the FDA is to blame.