Kenvue shares rose more than 5% in premarket trading on Tuesday, staging a recovery from a record low hit the previous session after US President Donald Trump linked the company’s popular pain reliever Tylenol to autism.
The president’s remarks, delivered on Monday, associated childhood vaccines and Tylenol use during pregnancy with autism, elevating a controversial claim unsupported by scientific evidence into the national policy debate.
His comments rattled investors and briefly pushed Kenvue shares to their lowest point since the company’s spin-off from Johnson & Johnson.
Tylenol’s revenue importance raises stakes
With Tylenol, known generically as acetaminophen or paracetamol, accounting for around 10% of Kenvue’s revenue, it was being believed that Trump’s warning could hurt its sales and lead to an increase in lawsuits from parents alleging that Tylenol contributed to autism in their children.
Kenvue moved quickly to respond, stating that “independent, sound science clearly shows that taking acetaminophen does not cause autism.”
Medical groups have also stressed that untreated fever and pain during pregnancy can be harmful, and warnings against safe medications could endanger maternal health.
Why are analysts playing down the risks?
Market analysts however, were divided on the immediate fallout but broadly emphasized the lack of fresh evidence behind the claims.
Citi analysts wrote that while Tylenol consumption might face some short-term impact due to negative headlines, judicial risk appeared limited.
“Overall, we see limited judicial risk following today’s announcement, but there could be some impact on Tylenol consumption due to negative headlines,” Citi analysts wrote.
The Citi analysts said they expected the stock to recover, citing the absence of new scientific evidence from the White House briefing
Canaccord Genuity’s Susan Anderson noted that “the current risk for Tylenol centers around public opinion on the brand.”
Her team added that the sell-off seemed “more noise than substance,” with pregnant women accounting for only a small proportion of overall Tylenol sales.
“It is likely low-single-digit percentage of Tylenol sales come from use by pregnant women,” Canaccord Genuity analysts said.
Regulators reaffirm no causal link
Regulatory agencies also pushed back on Trump’s assertions.
The Food and Drug Administration said it will review product labels to ensure they reflect the latest research on acetaminophen and neurological outcomes but reiterated that no causal link has been established.
The World Health Organization underscored that evidence connecting paracetamol use in pregnancy to autism remains inconsistent, while the European Medicines Agency confirmed there is no new data warranting a change to guidance.
Political weight behind unproven claims
During his Roosevelt Room address, Trump insisted that women should avoid Tylenol during pregnancy, even acknowledging that his stance diverged from the more cautious guidance of his own health advisers.
“Taking Tylenol is not good. I’ll say it — it’s not good,” he said.
His remarks drew sharp criticism from medical experts, scientists, and even some conservative commentators, who warned that amplifying unproven theories could harm public health.
Christian broadcaster Erick Erickson wrote on X that the president was “scaring moms with research about autism that does not hold up under much scrutiny.”
For now, investors appear to be treating the issue as a political storm rather than a structural threat, with Kenvue’s rebound suggesting confidence that the brand’s long-term fundamentals remain intact despite heightened legal and reputational risks.
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