Topline
Shares of Tylenol-maker Kenvue jumped more than 6% as trading opened Tuesday, a day after President Donald Trump linked the use of the drug’s active ingredient during pregnancy to increased risk for autism, despite lacking scientific evidence.
Economists saw “limited” risk to the pharmaceutical firm’s stock, despite some expected impact on Tylenol consumption.
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Key Facts
Kenvue shares rose about 6.2% to around $18 as trading opened Tuesday, following an earlier rally in premarket while rebounding from a 7.4% drop on Monday as the stock hit a record low of $16.89.
Trump on Monday urged Americans to “fight like hell” not to take Tylenol and suggested children should not use the pain reliever, and Kenvue has disputed the claim, arguing, “We believe independent, sound science clearly shows that acetaminophen does not cause autism.”
Analysts from Citi wrote in a note on Monday a lack of scientific evidence supporting the Trump administration’s link presents a “limited judicial risk,” with “some impact on Tylenol consumption due to negative headlines,” while Susan Anderson, an analyst for Canaccord Genuity, wrote, “The current risk for Tylenol centers around public opinion on the brand.”
Keonhee Kim, a Morningstar analyst, wrote earlier this month a proposed link between Kenvue’s medication and autism could pose a “noticeable impact on the firm’s earnings power.”
Big Number
23%. That’s the estimated percentage of adults in the U.S.—roughly 52 million people—who consume a medicine with acetaminophen each week, according to the nonprofit Consumer Healthcare Products Association.
Key Background
Tylenol, owned by Kenvue’s subsidiary McNeil Consumer Healthcare, has been studied in recent years for a possible link with use during pregnancy and autism. A study in 2024 found no risk associated with the drug, after a look into 24 million children born in Sweden between 1995 and 2019 found that acetaminophen was not associated with a risk for “autism, ADHD, or intellectual disability.” The American College of Obstetricians and Gynecologists previously said acetaminophen was “one of the only safe pain relievers” for use during pregnancy, citing “no clear evidence” between using the drug and any “trimester and fetal development issues.” A link between the drug and autism comes after Health Secretary Robert F. Kennedy said a “massive testing and research effort” was underway to identify the causes of autism. He previously pushed debunked claims linking the measles, mumps and rubella vaccine and childhood autism.
Further Reading
Source: https://www.forbes.com/sites/tylerroush/2025/09/23/tylenol-maker-kenvue-shares-rebound-after-trump-links-drug-to-autism/
