Kenvue Shares Surge After Trump’s Controversial Tylenol Claims

Shares of Kenvue, the parent company of Tylenol, experienced a significant rebound in premarket trading following controversial remarks made by U.S. President Donald Trump. During a White House news conference on March 4, 2024, Trump made unproven claims linking Tylenol, vaccines, and autism, instructing pregnant women not to take the medication.

On Monday, March 4, Kenvue’s stock fell by 7.5 percent, reflecting immediate investor concerns over Trump’s statements. However, early trading on Tuesday saw shares recover, climbing over 7 percent in premarket activity. This recovery suggests that investors may be reassured by the absence of new scientific evidence supporting Trump’s claims.

Trump’s remarks were part of a broader discussion during the news conference, where he urged mothers to refrain from administering Tylenol, known generically as acetaminophen in the United States and paracetamol in many other countries. These statements echoed ongoing debates about the safety of acetaminophen during pregnancy, particularly as they intersect with discussions surrounding childhood autism.

Kenvue, which was spun off from Johnson & Johnson in 2023, quickly moved to refute any connection between Tylenol and autism. The company emphasized the importance of the medication for managing fevers and pain during pregnancy. Kenvue warned that a lack of appropriate pain relief could lead to more severe health risks for both mother and child.

The comments from Trump come amid a growing movement led by Robert F. Kennedy Jr., the Secretary of Health and Human Services, known for his skepticism regarding vaccines. His initiative, dubbed the “Make America Healthy Again” movement, has focused on exploring potential causes of autism, raising further concerns among health professionals and consumers alike.

Despite the negative headlines, analysts from Citi Investment Research believe the risk of new lawsuits against Kenvue is limited. Analyst Filippo Falorni noted that while the company has previously faced hundreds of lawsuits regarding alleged links between Tylenol and autism, most have been dismissed. Falorni indicated that the market’s positive reaction could hinge on the lack of substantial new scientific data to support Trump’s claims.

Kenvue produces a range of consumer health products, including well-known brands like Band-Aids and Listerine, in addition to Tylenol. The company remains focused on providing safe and effective healthcare solutions to its customers, maintaining its commitment to transparency regarding the safety of its products.

As Kenvue navigates this challenging landscape, the company is likely to continue monitoring public sentiment and scientific research closely, ensuring that it can respond effectively to any emerging issues related to its products.