TLDR
- KVUE stock dropped 7.5% Monday after Trump linked Tylenol to autism without scientific proof
- Shares bounced 6% Tuesday in premarket trading as analysts noted lack of new evidence
- Kenvue disputed autism connection, warned against pregnancy risks from avoiding medication
- FDA updating labels but confirms no proven causal link to neurological conditions
- Company has successfully defended against hundreds of similar autism-related lawsuits
Kenvue stock surged 6% in premarket trading Tuesday, recovering from Monday’s steep decline. The consumer health giant rebounded after President Trump made unsubstantiated claims linking its blockbuster Tylenol brand to autism.
KVUE shares plummeted 7.5% Monday to record lows. The selloff followed Trump’s White House press conference where he repeatedly warned against Tylenol use during pregnancy.
The president told pregnant women “Don’t take Tylenol” approximately twelve times. He also advised mothers against giving acetaminophen to infants.
Kenvue, spun off from Johnson & Johnson in 2023, manufactures popular household brands. These include Band-Aids, Listerine, and the controversial pain reliever Tylenol.
Analyst Outlook Drives Recovery
Wall Street analysts drove Tuesday’s stock recovery with measured responses. Citi’s Filippo Falorni sees limited new lawsuit risks from Trump’s statements.
However, Falorni warned of potential consumption impacts from negative media coverage. The company has already battled hundreds of autism-related lawsuits, with most cases dismissed.
Canaccord Genuity’s Susan Anderson focused on brand reputation risks. She noted current concerns center around public perception rather than legal liability.
Analysts emphasized the absence of new scientific data supporting Trump’s claims. The presidential announcement relied on existing studies rather than breakthrough research.
Company Pushes Back Against Claims
Kenvue immediately disputed connections between acetaminophen and autism. The company warned that avoiding Tylenol during pregnancy could create dangerous health situations.
Pregnant women might face harmful choices between enduring fevers or using riskier alternatives. Medical professionals generally recommend acetaminophen as the safest pregnancy pain relief option.
The Food and Drug Administration announced label updates for Tylenol products. New warnings will mention possible links to autism and ADHD during pregnancy.
The FDA stressed no causal relationship has been scientifically established. Label changes represent precautionary measures based on inconclusive research.
Global Health Organizations Respond
World Health Organization officials called existing autism evidence inconsistent. They emphasized that life-saving vaccines should remain unquestioned despite Trump’s broader health claims.
European Medicines Agency representatives confirmed no new supporting evidence exists. Current medication guidelines don’t require changes based on available data.
KVUE stock climbed nearly 5% during early premarket hours Tuesday. The recovery erased most of Monday’s losses as trading opened.
The stock bounce reflects investor confidence in the company’s defensive position. Kenvue has successfully navigated similar controversies through scientific backing and legal victories.
