Tylenol maker Kenvue is looking to claw back some of the losses it took after the White House’s long-awaited announcement about autism and ADHD.
Kenvue (KVUE) lost 7.47% of its stock value on Sept. 22’s session after President Donald Trump and Secretary of Health and Human Services (HHS) Robert F. Kennedy Jr. linked acetaminophen, the active ingredient in Tylenol, to autism and attention deficit hyperactivity disorder.
“HHS will act on acetaminophen. The FDA is responding to clinical and laboratory studies that suggest a potential association between acetaminophen used during pregnancy and adverse developmental outcomes, including later diagnosis for ADHD and autism,” Secretary Kennedy said at the White House, while flanked by the president and Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services.
To combat this, the Food and Drug Administration will issue a physician’s notice about taking acetaminophen during pregnancy and will initiate a safety label change. Meanwhile, HHS will also begin an information campaign.
“Furthermore, thanks also to the politicization of science, the safety of acetaminophen against the risk of neurodevelopmental disorders in young children has never been validated. Prudent medicine, therefore, suggests caution at acetaminophen use in young children,” Kennedy said.
While the HHS Secretary’s comments focused on acetaminophen, President Trump attacked the Tylenol brand directly.
“Tylenol during pregnancy can be associated with a very increased risk of autism, so taking Tylenol is not good. I’ll say it, it’s not good,” Trump said while saying women should limit its use during pregnancy and “tough it out” if they feel pain.
Kenvue did not immediately respond to requests for comment.
Image source: Chung/Politico/Bloomberg via Getty Images
Kenvue stock reverses tumble after White House attacks Tylenol
Kenvue shares rose more than 6% premarket and continued climbing nearly 5% shortly after the opening bell on Sept. 23 as markets and analysts digested yesterday’s press conference.
Citi analysts said, “Overall, we see limited judicial risk following today’s announcement, but there could be some impact on Tylenol consumption due to negative headlines.”
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Citi kept a neutral rating and $20 price target on Kenvue shares, according to TheFly.
Meanwhile, Evercore ISI lowered its price target on Kenvue to $18 from $23 while maintaining an “in line” rating. The firm also cites headline and reputational risks, and possible changes in consumer behavior, as reasons for the downgraded outlook.
What does the science say about acetaminophen and Tylenol’s links to autism?
The scientific community has concerns about linking autism and acetaminophen use during pregnancy.
In August, Mount Sinai published a review of 46 existing studies analyzing data from more than 100,000 participants. The studies taken together suggest that there is evidence for a connection between acetaminophen use during pregnancy and neurodevelopmental disorders.
But researchers also say the study does not provide a direct link. “We cannot answer the question about causation, Diddier Prada, an epidemiologist at Mount Sinai’s medical school and the first author of the review, told the New York Times.
However, Prada is also quoted in the research paper as saying, “Our findings show that higher-quality studies are more likely to show a link between prenatal acetaminophen exposure and increased risks of autism and ADHD.”
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