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Kenvue Stock Rebounds After Trump Links Tylenol to Autism. Here’s Why.

Sep 23, 2025 07:51:00 -0400 by Elsa Ohlen | #Biotech and Pharma

Tylenol accounts for about 10% of Kenvue’s revenue, according to analyst estimates. (Dreamstime)

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Tylenol-maker Kenvue staged a comeback Tuesday after the stock hit a record low as President Donald Trump linked autism in children to use of the drug in pregnancy.

That is likely because of a “lack of new scientific evidence” to support the claims, Citi analysts said in a note.

The shares jumped 1.6% to $17.24, following a 7.5% drop in the previous session to $16.97—an all-time low. The stock needed to reach $18.34 to completely erase Monday’s losses.

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“While we acknowledge the White House/HHS recommendation, we see limited judicial risk following the 2023 case where a federal judge dismissed the class action lawsuit claiming Tylenol use during pregnancy caused autism and ADHD, which cited a lack of scientific evidence,” Citi analysts led Filippo Falorni said.

“Acetaminophen…commonly known as Tylenol during pregnancy can be associated with a very increased risk of autism, so taking Tylenol is not good,” Trump said at a press conference late Monday.

In a statement dated Monday, Food and Drug Administration Commissioner Martin Makary appeared to temper those claims. “To be clear, while an association between acetaminophen and autism has been described in many studies, a causal relationship has not been established and there are contrary studies in the scientific literature,” a Monday notice to physicians signed by Makary.

That comes as a relief to investors, who had feared more severe sales restrictions or even an outright ban on the drug, or the release of new scientific data establishing a causal link between the medicine and autism.

“The association is an ongoing area of scientific debate and clinicians should be aware of the issue in their clinical decision-making, especially given that most short-term fevers in pregnant women and young children do not require medication,” the letter added.

“In the spirit of patient safety and prudent medicine, clinicians should consider minimizing the use of acetaminophen during pregnancy for routine low-grade fevers,” it said.

In a statement, the FDA said it would begin the process to initiate a safety label change for acetaminophen.

Kenvue has strongly pushed back on the alleged link between the use of acetaminophen in pregnancy, sold under the brand name Tylenol, and autism.

“Independent, sound science clearly shows that taking acetaminophen does not cause autism,” a Kenvue spokesperson told Barron’s in an emailed statement. “We strongly disagree with any suggestion otherwise and are deeply concerned with the health risk this poses for expecting mothers.”

Falorni estimates that Tylenol accounts for about 10% of Kenvue’s global sales, and between 12% and 15% of its operating profit. Even assuming a 10% decline in sales and/or profits, that’d translate to just about 1 or 2 cents decline in earnings per share, the analyst said.

Write to Elsa Ohlen at elsa.ohlen@barrons.com