Tylenol maker's stock bounces back after Trump baselessly links painkiller to autism

The stock had fallen to record lows Monday on reports that Trump was planning to claim a link. But following his news conference later on Monday, which lacked any new scientific backing for the claims, Kenvue stock rose as much as 6% in pre-market trading on Tuesday.

Trump urged pregnant women to avoid the pain medication at a White House event on Monday, claiming it raises the risk of autism in children. He said: “Taking Tylenol is not good. … All pregnant women should talk to their doctors about limiting the use of this medication while pregnant.”

He later added: “Don’t take Tylenol. There’s no downside.”

Standing alongside his health secretary Robert F. Kennedy Jr., the president did not present any new evidence to justify his advice. Decades of autism research has failed to find a cause for the condition.

Nonetheless, Trump railed against Tylenol’s active ingredient, acetaminophen, and said it should only be taken by pregnant women if it is “medically necessary.”

The Food and Drug Administration used milder language than the president, recommending Monday that doctors “consider minimizing” the medicine for routine, low-grade fevers.

It added: "To be clear, while an association between acetaminophen and autism has been described in many studies, a causal relationship has not been established and there are contrary studies in the scientific literature."

Kenvue said Monday: “We believe independent, sound science clearly shows that taking acetaminophen does not cause autism. We strongly disagree with any suggestion otherwise and are deeply concerned about the health risks and confusion this poses for expecting mothers and parents.”

Tylenol is Kenvue’s biggest brand by revenue. Analysts have said it makes up a mid-to-high single digit percentage of the company’s total sales. Its active ingredient, acetaminophen, known as paracetamol in other countries, is one of the most widely used over-the-counter pain medications in the world. It is used to treat fevers, among other illnesses.

Trump’s advice to avoid the drug alarmed scientists and medical professionals, who warned that leaving fevers untreated could lead to greater health risks.

The Coalition of Autism Scientists said in a statement: “The data cited do not support the claim that Tylenol causes autism... and only stoke fear and falsely suggest hope when there is no simple answer.”

The American College of Obstetricians and Gynecologists called Trump's guidance “irresponsible” and “confusing” for patients.

Following the briefing, analysts at Citi said they expected Kenvue stock to rise again because of the lack of scientific backing provided by the administration.

"While we acknowledge the White House/HHS recommendation, we see limited judicial risk following the 2023 case where a federal judge dismissed the class action lawsuit claiming Tylenol use during pregnancy caused autism and ADHD, which cited a lack of scientific evidence," said analysts led by Filippo Falorni.