Kenvue Stock Tumbles on Tylenol Safety Concerns

Shares of Kenvue Inc. (KVUE), the consumer health company spun off from Johnson & Johnson, plunged by a record 9.4% on Friday amid investor anxiety over the safety of its flagship product, Tylenol. The sell-off was triggered by a Wall Street Journal report that the U.S. Department of Health and Human Services is expected to release findings suggesting a link between acetaminophen, Tylenol's active ingredient, and autism when used during pregnancy.

The company's stock hit its lowest price since it began trading in May 2023, closing at $18.62. The sharp decline contrasted with the broader market, where the .

In response to the concerns, Kenvue issued a statement vigorously defending the safety of its product. "We have continuously evaluated the science and continue to believe there is no causal link between acetaminophen use during pregnancy and autism," the company stated. Kenvue noted that its position is supported by over a decade of analysis and regulatory reviews by the U.S. Food and Drug Administration (FDA) and multiple studies from leading medical organizations.

The company advised expectant mothers to consult with their doctors before taking any over-the-counter medicines. Despite Kenvue's reassurances, the , with the day's losses wiping out significant market value. The stock has underperformed this year, shedding 12.8% in 2025, while the S&P 500 index has gained 10.2%.

The expected report from HHS keeps a spotlight on the agency and its leadership, following other recent high-profile decisions impacting the pharmaceutical sector. For Kenvue, the situation presents a significant public relations and financial challenge as it navigates the fallout from the safety concerns surrounding its most recognizable brand.