Omniphage — Anthony Stevens

In the near future, a group of college researchers are working at combining nanotechnology and genetics in the search for cancer treatments. A serendipitous discovery leads to an economical cure for everything.
Unfortunately, things rapidly spin out of control and the news spreads that many major drug companies, most hospitals, all assisted-care facilities, and all wheelchair and orthopedic manufacturers are no longer needed. As information on the new drug, Omniphage escapes, the worldwide financial house of cards collapses.
Further fear and confusion reign when it is discovered that mixing Omniphage with certain types of animal genetic material can create hybrids. Superstitious hysteria brings out the worst in many people. Only a few places with names like Alice Island, Lazy Fair and Dreamland, provide a measure of security for education and research.