It sounds like you're more frustrated with your friend's coworker than anything. And you're right that your friend should not have to be putting up with extremely inappropriate behavior at work.

It's hard to know exactly what the situation is with the therapist though. Maybe this individual never mentioned to his therapist that he was having trouble with work? Or perhaps he's upset because these past issues are bothering him, and he and his therapist agree that exploring these issues in order to move past them is the best way for him to start feeling better? It's hard to really know what the situation is. It could be that the therapist is pushing him in inappropriate ways, but I wouldn't necessarily assume it.

As for medication - if any therapist I was seeing started demanding I take drugs, I would never go back. They'd be overstepping their bounds - especially since therapists can not prescribe drugs. They can suggest and refer, but certainly not prescribe, force, or coerce.

Since the issue is his performance in the workplace, it sounds like that's where the problem needs to be addressed. The therapist can't step in and speak with the workplace - only with the patient. Anything else would be a violation of confidentiality.