Obama picks FDA chief, starts food safety panel

"There are few jobs in the federal government that are as tough or important as FDA commissioner," said Jean Halloran, director of food policy initiatives at Consumers Union.

Hamburg's nomination means the FDA will "have the leadership it needs at a time when it faces huge challenges," Halloran added.

LOW MORALE

Democratic Congressman Bart Stupak said he was pleased Obama went outside the agency for a new chief. He said the FDA had been "plagued by low morale, antiquated systems, inadequate funding and management more interested in protecting the companies they regulate than the American people."

Reports by outside experts have found the FDA underfunded and ill-equipped to manage its oversight of prescription drugs, medical devices, most foods and other products that account for about one-quarter of the U.S. economy.

Obama highlighted a new USDA rule to keep sick and injured cattle out of slaughterhouses to safeguard against mad cow disease.

He praised Sharfstein for "efforts to protect children from unsafe over-the-counter cough and cold medications" and a program to ensure people with disabilities have access to prescription drugs.

The pharmaceutical industry's main lobbying group praised Hamburg's selection but did not comment on Sharfstein, who did previous work for Democratic Congressman Henry Waxman, a harsh critic of drugmakers.

Hamburg "brings managerial skills that are essential for directing science-based activities," said Billy Tauzin, head of the Pharmaceutical Research and Manufacturers of America.

(Reporting by Lisa Richwine, Maggie Fox and Jeff Mason; Editing by Xavier Briand)