Kenvue Shares Decline Amid Reports of Tylenol-Autism Link

Shares of Kenvue Inc., the manufacturer of Tylenol, dropped over 10% on Friday after reports emerged that U.S. Health Secretary Robert F. Kennedy Jr. intends to announce a potential link between the use of acetaminophen during pregnancy and autism in children. The Wall Street Journal reported that the Department of Health and Human Services (HHS) is expected to release findings later this month suggesting that prenatal use of Tylenol may be associated with an increased risk of autism.

In response, Kenvue stated, "We have continuously evaluated the science and continue to believe there is no causal link between acetaminophen use during pregnancy and autism." The company emphasized that the Food and Drug Administration (FDA) and leading medical organizations agree on the safety of acetaminophen when used as directed during pregnancy.

The HHS addressed the reports, stating, "We are using gold-standard science to get to the bottom of America's unprecedented rise in autism rates. Until we release the final report, any claims about its contents are nothing more than speculation."

Analysts have weighed in on the situation. Evercore ISI maintained an "In Line" rating with a $25.00 price target for Kenvue, noting that the stock is currently trading at $18.62. RBC Capital reiterated a "Sector Perform" rating with a $22.00 price target, acknowledging the ongoing litigation and potential regulatory concerns surrounding Tylenol.

Despite the market reaction, current medical guidelines consider acetaminophen safe for use during pregnancy when taken at the lowest effective dose for the shortest necessary duration. The FDA advises pregnant women to consult their healthcare providers before using over-the-counter medications.

Kenvue's stock performance reflects investor concerns over the potential implications of the forthcoming HHS report. The company continues to monitor the situation closely and stands by the safety profile of its products.