Kenvue Shares Plunge on Report of Tylenol-Autism Link
Stock drops over 9% after a report suggests an upcoming HHS study will connect Tylenol's main ingredient to autism, a claim the company refutes.
Shares of Kenvue, the consumer health giant behind Tylenol, plunged more than 9% to a one-year low following a report that an upcoming government study will link its key product to autism. The sell-off was triggered by a Wall Street Journal article stating that a Health and Human Services (HHS) report, championed by Secretary Robert F. Kennedy Jr., will suggest a connection between acetaminophen use during pregnancy and the developmental disorder.
Kenvue has strongly pushed back against the claims. In a statement, the company said it has "continuously evaluated the science and [continues] to believe there is no causal link" between acetaminophen and autism. The company's position is supported by major health organizations. The during pregnancy when taken as directed.
The Food and Drug Administration (FDA) has also stated it has not found "clear evidence" of adverse developmental outcomes from appropriate acetaminophen use during pregnancy. This scientific consensus was a key factor when in 2023 that alleged a similar connection, citing a lack of scientific evidence.
An HHS spokesperson called any claims about the report's contents "nothing more than speculation" until its official release. Despite this, the market reacted swiftly to the potential headline risk for Kenvue's flagship product. Kennedy has made investigating the causes of autism a central focus of his tenure at HHS.
Analysts note the difficulty in proving such a link. Navann Ty, an analyst at BNP Paribas, commented that the "hurdle to proving causation is high, particularly given that the litigation previously concluded in Kenvue’s favor." However, the report has cast a shadow over one of the most widely used over-the-counter pain relievers, and investors are watching closely for the official HHS findings.