RJK Jr.'s Involvement In Merck Lawsuit Faces Scrutiny Ahead Of Senate Hearing

Robert F. Kennedy Jr., President Donald Trump‘s nominee for Health and Human Services Secretary, is facing scrutiny over his decision to retain financial interests in ongoing litigation against Merck & Co. Inc. (NYSE:MRK) concerning its Gardasil vaccine, just ahead of his Senate nomination hearing on Wednesday, Jan. 29.

The arrangement, disclosed in an ethics agreement and court documents, has raised questions about potential conflicts of interest as Kennedy seeks to lead federal agencies that regulate drugmakers.

Citing the ethics filing, the New York Times writes that Kennedy, a prominent vaccine skeptic, will continue receiving fees from cases referred to Wisner Baum, a law firm suing Merck over its Gardasil vaccine. Gardasil is widely administered to adolescents to prevent cervical and other cancers. Over the past two years, Kennedy earned over $2.5 million from these referrals, a sum far exceeding the health secretary's annual salary of approximately $200,000.

Merck reported a decline of 11% in sales of Gardasil to $2.31 billion due to lower demand in China, partially offset by higher sales in the U.S., driven by public-sector buying patterns, higher pricing and demand, and higher demand in most international regions.

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Kennedy clarified that he is not an attorney in these cases but is entitled to a 10% share of contingency fees.

He has pledged to divest interests in cases involving federal government programs, such as the National Vaccine Injury Compensation Program, but will retain stakes in other lawsuits if cleared by the HHS ethics office.

The NY Times adds that critics argue Kennedy's financial ties pose significant ethical concerns. Ethics experts, including Richard Painter, a former White House ethics lawyer, and Virginia Canter from State Democracy Defenders Action, noted that Kennedy's role overseeing agencies like the FDA could create a perception of bias, particularly given Merck's presence in the vaccine and pharmaceutical markets. Painter characterized Kennedy's position as potentially “extortionate,” while Canter questioned his ability to act impartially.

Lawmakers have expressed mixed reactions. While Senate committees have scheduled confirmation hearings, influential figures, such as Senator Mitch McConnell (R-KY) and Bill Cassidy (R-LA), voiced reservations about Kennedy's vaccine stance. Senator Elizabeth Warren (D-MA) criticized the financial arrangement as a conflict of interest that endangers public health, accusing Kennedy of profiting from promoting anti-vaccine conspiracies, according to The Times.

Kennedy has long criticized government and pharmaceutical industry ties, calling for an end to "regulatory capture." However, his history of vaccine opposition, including calls to revoke COVID-19 vaccine approvals and promotion of lawsuits alleging harm from Gardasil, has amplified scrutiny. Merck maintains that Gardasil is safe, citing extensive scientific evidence supporting its efficacy, according to The New York Times.

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