Kenvue Shares Plunge to 13-Month Low on Tylenol Safety Fears
Stock suffers a record 9% sell-off after reports suggest a government study will link acetaminophen use during pregnancy to autism.
Shares of Kenvue Inc. (KVUE), the consumer health giant spun off from Johnson & Johnson, experienced a record single-day decline Friday, tumbling more than 9% to a 13-month low. The dramatic sell-off erased billions from the company's market capitalization, triggered by investor anxiety over a forthcoming government report.
The market turmoil began after reports surfaced that the U.S. Department of Health and Human Services is expected to release a study in September linking the use of acetaminophen, the active ingredient in Kenvue's flagship Tylenol brand, to autism in children born to mothers who used the painkiller while pregnant. The news sent shockwaves through the market, with as investors reacted to the potential regulatory and legal ramifications for one of the world's most popular over-the-counter medicines.
In response to the precipitous stock drop, 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 asserted. Kenvue cited over a decade of scientific analysis and regulatory review by the U.S. Food and Drug Administration, which has not established such a connection. The company advised expectant mothers to consult their doctors before taking any over-the-counter medicines.
The market's reaction was swift and severe. Kenvue shares closed at $18.62, their lowest point since August of the previous year. Analysts responded quickly to the uncertainty, with several firms on the stock. The development adds a significant new challenge for the company, which is already navigating a complex strategic review process designed to optimize its operations and enhance shareholder value.