Private Equity Guide to Consumer Product Investing Under the Trump Administration: Food and Drug Administration (FDA) Developments

18 April 2019
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Key takeaways:
  • During the first two years of the Trump administration, FDA has launched a number of new initiatives affecting consumer product companies, including policies affecting foods, dietary supplements, cosmetics, over-the-counter drugs, e-cigarettes, and digital health products. While many of these initiatives lowered regulatory burdens and encouraged innovation, regulatory scrutiny has increased in some areas.
  • Consumer product companies may also be impacted by Congressional developments, such as pending legislation that would reform the regulation of cosmetics and over-the-counter drugs.
  • An understanding of FDA’s response to consumer product trends—along with a broader understanding of where regulatory policy may head after the resignation of FDA Commissioner Scott Gottlieb—is essential for private equity sponsors seeking to invest in the consumer product space.