MedTechLaw

Legislature Encouraging Investment in Technology Businesses

The Assembly Commerce and Economic Development Committee passed last week approved legislation that would revise the Technology Business Tax Certificate Transfer Program, which allows unprofitable technology and biotechnology businesses to sell their unused net operating losses (NOLs) and R&D tax credits. The bill would increase the lifetime benefit per business from $10 million to $15 million, increase the minimum market price for the transfer from 75 percent to 80 percent of the tax benefit, and allow unused funds from the annual $10 million set-aside for businesses in innovation zones to be transferred to the general program pool. The legislation now heads to the Assembly Appropriations Committee.  To view the legislation, click here.

Licensing From Universities: A Licensee’s Perspective

As seen in the April 14, 2008 New Jersey Law Journal’s Intellectual Property and Life Sciences Supplement 

This article authored by Ira A. Rosenberg, Chair of Sills Cummis & Gross’ Life Sciences Practice Group, and Lori M. Waldron, Of Counsel to the Group, discusses the unique issues of negotiating a license agreement with a university.  Please click here to read this article in its entirety. 

Silver Lining in the Defeat of the Stem Cell Bond Referendum

This New Jersey TechNews article written by Ted Zangari, a Member of Sills Cummis & Gross and Chairman of NJTC’s Government Affairs Committee, proposes modest steps to make the State of New Jersey “the center of excellence in biomedicine.”  Please click here to read this article in its entirety.

Corzine Signs Charity Care Fraud Prevention and Detection Act

A bill sponsored by Senator Joseph F. Vitale which will improve State oversight over the hospital charity care subsidy program, which provides funding for emergency health care for the uninsured, was signed into law by Governor Corzine. The bill, a Senate Committee substitute for S2702, S2727, and S3007, known as the "Charity Care Fraud Prevention and Detection Act," will establish greater oversight over the State's charity care subsidy program. The new law will require the Commissioner of Health and Senior Services to require uniform procedures for hospitals acquiring information from charity care applicants, and will require the Commissioner and the Medicaid Inspector General to establish an inter-agency agreement to root out charity care fraud and recover money related to fraudulent claims. The law will also allow the Commissioner of Health to reduce a hospital's annual charity care funding if it is determined that the hospital sought State funding for claims where they should have had reasonable cause to suspect the claim was fraudulent.

Year in Review with NJTC

The New Jersey Technology Council's (NJTC) Government Affairs Committee has become extremely proactive.  Led by Ted Zangari, a Member of the Firm, the committee meets regularly with legislators to promote the NJTC tech agenda.  Please click here  to view the 2006-2007 Annual Report.

Important Decision Regarding Home Health Care Workers: U.S. Supreme Court Affirms Workers Are Exempt From Overtime and Minimum Wage

On June 11, 2007, the U.S. Supreme Court issued a unanimous decision in Long Island Care at Home, Ltd. v. Coke, which impacts wages paid to home care workers.  In Coke, a home care worker sued her employer, claiming that she should be paid overtime and minimum wage.  At issue was a provision in the federal Fair Labor Standards Act (“FLSA”) that provides an exemption for overtime and minimum wage requirements for individuals “employed in domestic service employment to provide companionship services for individuals who (because of age or infirmity) are unable to care for themselves (as such terms are defined and delimited by regulations of the Secretary [of Labor].”  Full Report

Federal Court Finds That Pharmaceutical Company Can Lawfully Seek Waiver of FMLA Claims From Terminated Employee

During the last few years, various courts have refused to enforce employees’ waiver of claims in standard separation or severance agreements.  These agreements are typically used in industry downsizings and corporate restructurings.  One unsettled issue is whether employees could lawfully waive their FMLA rights.  A federal court in Pennsylvania recently reversed its earlier decision in Dougherty v. Teva Pharmaceuticals USA, Inc. on the question of whether employees may waive their rights under the Family and Medical Leave Act (“FMLA”). Full Report

Eli Lilly Pledges to Protect Against Genetic Information Discrimination

Eli Lilly announces formal policy to protect genetic information of employees in an effort to promote use of preventive medical care and the sharing of medical information for research purposes.  Full report

Big Pharma–Generic Consolidation Continues

Mylan Laboratories has agreed to acquire the generic branch of Germany’s Merck KGaA for $6.7B in an all-cash deal that will make Mylan the world’s third largest manufacturer of generic drugs.  Mylan is paying more than its own market value to buy the Merck unit with annual sales almost double its own.

U.S. House Backs Bill Barring Genetic Discrimination

A bill that would prohibit genetic discrimination against people won overwhelming approval in the U.S. House of Representatives at the end of April 2007. It would ban group health plans and health insurers from denying coverage to a healthy person or charging higher premiums based solely on a genetic predisposition to a disease. It also would prohibit employers from using genetic information in hiring, firing, job placement or promotion decisions. Reuters