Pharmaceutical Reps Are Salesmen, Court Rules

Pharmaceutical representatives are salesmen, even though they don't actually sell anything, according to a ruling by the 9th U.S. Circuit Court of Appeals, reported in the Arizona Daily Star.

The federal judges rejected arguments by two former employees of SmithKline Beecham Co. that pharmaceutical reps cannot be classified as "outside salesmen" — individuals who make sales and obtain orders primarily away from the company's office. According to the court, pharmaceutical reps fit this definition.

The court decision focused on the definition of 'sales.' Federal law prohibits drug companies from selling products directly to the public, meaning individuals must use a prescription from a physician. Pharmaceutical reps visit physicians to persuade them to prescribe company products rather than those sold by competitors.

Read the Arizona Daily Star report on pharmaceutical reps.

Read more on drug manufacturers:

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-House Hears Arguments Over FDA's Device Approval Process

-5 Ways Surgery Centers Can Maximize the Benefits of Their Membership With a GPO

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