I don't think it's "a tiny bit" if we're accounting for it by money spent. You might think that the later steps in drug development (medical trials, especially) are wasteful but then that problem lies with the FDA's overly strict standards.
I wouldn't call them overly strict. They are just inappropriate, bad or badly enforced. There are too many cases of companies selling harmful food/drugs/medicine, even knowingly, with the FDA dragging their feet or just doing nothing.
