Kenvue shares rose in premarket trading Tuesday, rebounding after a record low the day before, even as U.S. President Donald Trump linked Tylenol to autism risk during pregnancy at a White House press conference.
The stock was up about 6% in U.S. premarket trade.
Kenvue shares slumped 7.5% Monday after Trump tied autism to childhood vaccine use and to pregnant women taking Tylenol, bringing unsupported claims into U.S. health policy.
He advised parents and expectant mothers against using the painkiller and suggested altering common vaccine schedules.
In response, FDA Commissioner Marty Makary announced that the agency would begin revising acetaminophen’s safety label, citing studies pointing to a possible link between its use and neurological conditions.
“The FDA is taking action to make parents and doctors aware of a considerable body of evidence about potential risks associated with acetaminophen,” Makary said.
“Even with this body of evidence, the choice still belongs with parents. The precautionary principle may lead many to avoid using acetaminophen during pregnancy, especially since most low-grade fevers don’t require treatment. It remains reasonable, however, for pregnant women to use acetaminophen in certain scenarios," he added.
Evercore analysts trimmed their price target on Kenvue to $18 from $23 after the developments.
“The updated sum-of-the-parts valuation solves for $15-28 per share and we lower our price target to $18,” the midpoint of the low and medium valuations outlined in Evercore’s analysis.
Separately, Citi analysts said they expect Kenvue’s shares to bounce back, pointing to the lack of new scientific backing in the White House briefing.
"Overall, we see limited judicial risk following today’s announcement, but there could be some impact on Tylenol consumption due to negative headlines," they said.
Medical professionals broadly dispute the suggestion of a causal link, according to a Reuters report.
Meanwhile, Kenvue also reiterated there is no scientific evidence connecting acetaminophen, Tylenol’s active ingredient, to autism, cautioning that such claims could pose risks to maternal health.
Source :
https://www.investing.com/news/stock-market-news/kenvue-shares-rise-despite-trump-linking-painkiller-to-autism-risk-4250620
