Shares of Kenvue (KVUE), the consumer health company behind over-the-counter painkiller Tylenol, dropped over 13% to a 52-week low on Friday. The decline came after news that Health Secretary Robert F. Kennedy Jr. plans to release a report suggesting a link between Tylenol use during pregnancy and autism. The news was first reported by The Wall Street Journal.
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The upcoming Department of Health and Human Services (HHS) report is expected to propose that low folate levels and prenatal use of acetaminophen (Tylenol’s active ingredient) may contribute to autism risk. It is also likely to recommend folinic acid, a folate-derived compound, as a potential treatment for some autism symptoms. The report is expected to be published later this month.
In response, Kenvue has stated that there is no proven causal link between acetaminophen and autism. Also, it highlighted that both the Food and Drug Administration (FDA) and leading medical organizations “agree on the safety” of the drug and its use during pregnancy.
Kenvue’s Struggles
The news adds to an already challenging year for Kenvue. So far in 2025, the company has faced operational challenges, including weaker-than-expected sales for some products and headwinds from consumer spending and retailer behavior.
Also, leadership uncertainty has added to the pressure. The appointment of Kirk Perry as interim CEO in July was followed by activist investor pressure for an overhaul. The company is now reviewing its business strategy and capital allocation to identify ways to boost shareholder value.
Moreover, KVUE is dealing with about $150 million in tariff costs this year, along with slower sales in China due to changes in its distributor network and weak demand during winter.
Despite these setbacks, management remains optimistic about a stronger second half, with support from new product launches and updated marketing efforts.
What Is the Price Prediction for Kenvue Stock?
On TipRanks, KVUE stock has received a Moderate Buy consensus rating, with four Buys and nine Holds assigned in the last three months. The average Kenvue stock price target is $23.54, suggesting an upside potential of 27.93% from the current level.
