Final answer:
A drug prepared in unsanitary conditions that may be contaminated is considered adulterated and presents health risks due to potential contaminants or biohazards. The Pure Food and Drug Act of 1906 was established to combat such issues with inspection and sanitation standards.
Step-by-step explanation:
A drug prepared, packed, or held under unsanitary conditions and potentially contaminated with filth, or that may be injurious to health, is considered adulterated. Such conditions pose a significant risk to consumers by introducing contaminants that may cause illness or harm.
Contaminants can come in many forms, including biological hazards (or biohazards) like disease-causing organisms, or chemicals that are toxic to humans. Consumption of these contaminants can lead to serious health issues, as was the case historically when foods and medicines included substances like morphine and opium without regulation, leading to widespread addiction and health crises. This concern led to the enactment of the Pure Food and Drug Act in 1906, establishing federal standards for the inspection and sanitation of food and pharmaceuticals, and requiring the listing of drug ingredients to protect public health.