The shares of consumer health company Kenvue (KVUE) bounced in early trading on Tuesday. This came despite a claim a day earlier by President Donald Trump that acetaminophen, the active ingredient in Tylenol—the pain relief medication produced by the company—is linked to autism.
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KVUE stock was up about 6% as of 5:22 a.m. EDT to around $18.00. This pared the loss from the previous day, which had seen the shares shrink by more than 7%.
Trump Claims Tylenol ‘Dangerous’ for Pregnant Women
Trump, during a press conference on Monday, noted that a woman taking Tylenol during pregnancy is “something that’s very dangerous to the woman’s health”. The U.S. president emphasized that women are strongly recommended to limit their use of the pain reliever during pregnancy unless medically necessary, for instance, in the case of an extremely high fever.
“Effective immediately, the Food and Drug Administration (FDA) will be notifying physicians that the use of acetaminophen, which is basically commonly known as Tylenol, during pregnancy can be associated with a very increased risk of autism,” Trump said. “So taking Tylenol is not good,” he added.
The FDA has also revealed plans to revise the labels on Tylenol and its generic versions to reflect this claim. This is even as Kenvue has previously denied any connection between the acetaminophen found in Tylenol and autism among pregnant women.
Earlier this month, Kirk Perry, Kenvue’s interim CEO, met with Robert F. Kennedy Jr, the U.S. Secretary of Health, to defend the safety of Tylenol. Perry also lobbied for the removal of the drug from the health department’s forthcoming report on the potential cause of autism.
Controversy Rattles Kenvue
Acetaminophen helps to relieve pain and reduce fever. However, some studies suggesting a connection between the ingredient and autism have helped fuel concern about its safety.
Over the last three months, KVUE stock has dropped by over 20% as the controversy around the pain relief medication has taken a toll on the company.
Tylenol was previously part of Johnson & Johnson’s (JNJ) portfolio before Kenvue became an independent company in 2023. The medication is a major profit driver and a key part of Kenvue’s business, ranking as its second-largest brand with around 15% of U.S. sales.
The latest development in the controversy will likely compound the company’s struggles. Under its Self Care Division, Kenvue’s organic sales—which exclude factors like acquisitions or currency effects—declined in its most recent quarter due to reduced consumer spending.
Is Kenvue a Good Stock to Buy?
Turning to Wall Street, Kenvue’s shares currently have a consensus Moderate Buy recommendation on TipRanks. This is based on four Buys and nine Holds assigned by 13 Wall Street analysts over the past three months.
However, the average KVUE price target of $22.68 suggests a potential 34% increase from the last price of $16.97 as of Monday’s closing bell.
