Topline<\/p>\n
Shares of Tylenol-maker Kenvue jumped more than 6% in premarket trading on Tuesday, a day after President Donald Trump linked the use of the drug\u2019s active ingredient during pregnancy to increased risk for autism, despite lacking scientific evidence. <\/p>\n
Economists saw “limited” risk to the pharmaceutical firm’s stock, despite some expected impact on Tylenol consumption.<\/p>\n
Getty ImagesKey Facts<\/p>\n
Kenvue shares rose about 6.7% to around $18.10in early trading Tuesday, rebounding from a 7.4% drop on Monday as the stock hit a record low of $16.89.<\/p>\n
Trump on Monday urged<\/a> Americans to \u201cfight like hell\u201d not to take Tylenol and suggested children should not use the pain reliever, and Kenvue has disputed the claim, arguing, \u201cWe believe independent, sound science clearly shows that acetaminophen does not cause autism.\u201d<\/p>\n Analysts from Citi wrote in a note on Monday a lack of scientific evidence supporting the Trump administration\u2019s link presents a \u201climited judicial risk,\u201d with \u201csome impact on Tylenol consumption due to negative headlines,\u201d while Susan Anderson, an analyst for Canaccord Genuity, wrote, \u201cThe current risk for Tylenol centers around public opinion on the brand.\u201d<\/p>\n Keonhee Kim, a Morningstar analyst, wrote<\/a> earlier this month a proposed link between Kenvue\u2019s medication and autism could pose a \u201cnoticeable impact on the firm\u2019s earnings power.\u201d<\/p>\n Big Number<\/p>\n 23%. That\u2019s the estimated percentage of adults in the U.S.\u2014roughly 52 million people\u2014who consume a medicine with acetaminophen each week, according<\/a> to the nonprofit Consumer Healthcare Products Association.<\/p>\n Key Background<\/p>\n Tylenol, owned by Kenvue\u2019s 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 \u201cautism, ADHD, or intellectual disability.\u201d The American College of Obstetricians and Gynecologists previously said<\/a> acetaminophen was \u201cone of the only safe pain relievers\u201d for use during pregnancy, citing \u201cno clear evidence\u201d between using the drug and any \u201ctrimester and fetal development issues.\u201d A link between the drug and autism comes after Health Secretary Robert F. Kennedy said<\/a> a \u201cmassive testing and research effort\u201d was underway to identify the causes of autism. He previously pushed debunked claims linking the measles, mumps and rubella vaccine and childhood autism.<\/p>\n