Robert F Kennedy Jr says he will retain his share of any payout from litigation against pharmaceutical giant Merck (MRK) if he is confirmed as Donald Trump’s health chief.
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The nominee for health secretary within the new administration says he is entitled to 10% of proceeds should the lawsuit against MRK’s Gardasil vaccine prove successful.
The case against the vaccine, which prevents human papillomavirus, known as HPV, has been brought by law firm Wisner Baum, where Kennedy is a co-counsel.
In a letter to the top ethics advisor at the US Department of Health and Human Services (DHHS), he said he was still entitled to any fees relating to the action.
The first of a series of cases begins in Los Angeles this week. Basically, claimants argue that Merck misrepresented the vaccine’s efficacy while concealing its safety risks and side effects, which in certain cases led to injury or even death.
“I am entitled to receive 10 per cent of fees awarded in contingency fee cases referred to the firm,” he wrote in the letter to Randal Hall, the top ethics official at the DHHS, adding that he is not trying the case.
The ethics disclosure came as it was announced Kennedy’s confirmation hearing will take place in the Senate next Wednesday, January 29th.
Kennedy, a well-known vaccine skeptic, said he would not seek to sway the result if confirmed as Trump’s top health official.
But it comes just days after Reuters revealed Kennedy had played a “key role” in organizing mass litigation against MRK.
MRK Sales May Have Been Hit
The lawsuits and publicity may have hit sales of the vaccine. MRK noted earlier this month at the JPMorgan healthcare industry event in San Francisco that sales of its Gardasil vaccine have been lighter than expected, although recent regulatory approval China is a positive as it opens up a large new market.
Relating to his work with Wisner Baum, Kennedy said he will divest any interest to receive payment from all pending cases that involve claims against the United States, including any claims filed under the National Vaccine Injury Compensation Program.
Is MRK a Good Stock to Buy Now?
Overall, Wall Street has Moderate Buy consensus rating on MRK stock, based on 10 Buys and seven Holds. The average MRK price target of $124.00 implies 24% upside from current levels. Shares of MRK have fallen 13% in the last 12 months.
