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   Access Pharma
   signed an agreement
                                   Dept of Labor backs reps on OT pay
   with iMedicor for the           THE US DEPARTMENT of                                                      qualify for an administrative
   North American commer-          Labor (DOL) filed an amicus                                               exemption either—a second
   cial launch of MuGard, its      brief with a federal appeals                                              provision in the law that would
   FDA approved mucoad-            court in support of Novartis                                              prevent overtime pay—since
   hesive oral rinse for the       sales reps fighting for overtime                                           reps are obligated to adhere to
   management of oral              compensation.                                                             a “core message” provided by
   mucositis and stomatitis           DOL filed the brief after a                                            Novartis, such as clinical studies,
   caused by radiotherapy          district court in New York “com-                                          brochures or other scripted sales
   and/or chemotherapy.            mitted legal error” by classifying                                        materials.
   MuGard is being com-            Novartis reps as “outside sales,”                                            While DOL concedes that
   mercially launched world-       a designation exempting them                                              reps do exercise some discre-
   wide, with initial launches     from overtime pay under the                                               tion when it comes to meeting
   in the United Kingdom,          Fair Labor Standards Act.                                                 with physicians—specifically
   Germany, Italy, Norway             Sales representatives on a                                             what time of day to visit a phy-
   and Greece having been          detail do not qualify as outside                                          sician and how to best execute
   previously announced.           sales personnel, since they don’t    DOL secretary Hilda Solis: OT        their presentations, for example
                                   make direct sales as defined by       pay should be given to reps          –“they do not exercise discre-
   Ariad Healthcare                the exemption, according to the                                           tion and independent judgment
                  will be EMD      DOL brief.                              “Although the reps’ duties        with respect to matters of signifi-
                  Serono’s            “The reps do not sell or take     bear some of the indicia of          cance,” according to the brief.
                  lead market-     orders for Novartis’ drugs; rath-    sales…the fact that the reps do         Over 2,500 reps working for
                  ing agency       er, they provide information to      not actually ‘make sales’ con-       Novartis in New York, California
                  in Canada        target physicians about Novartis’    clusively demonstrates that the      and other states comprise the
                  for Multibi-     drugs with the goal of persuad-      position is not that of an outside   plaintiffs in the case. The case
   onta Probiotic Multivita-       ing the physicians to prescribe      salesperson,” according to the       will be held in the 2nd US Cir-
   min beginning in 2010.          those drugs to their patients,”      brief.                               cuit Court of Appeals.
   Ariad’s work on Multibi-        the brief stated.                       DOL said the reps don’t        
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