Pharmaceutical Company Kenvue's Stock Falls Based on Rumor of RFK Jr.'s Upcoming Connection between Tylenol and Autism
In a month, the U.S. Department of Health and Human Services (HHS) is set to publish the results of their investigation into a possible link between Tylenol (acetaminophen) use during pregnancy and autism. This upcoming report has caused a stir, with Tylenol manufacturer Kenvue Inc.'s shares experiencing a significant drop, before recovering slightly to 9.4%.
The Wall Street Journal, citing sources familiar with the matter, reported that the upcoming findings may suggest that use of over-the-counter pain medication with acetaminophen, the active ingredient in Tylenol, may cause autism. This report has led to consumers asking a federal appeals court panel to overturn a judge's ruling that rejected the scientific evidence behind lawsuits alleging that prenatal exposure to over-the-counter Tylenol caused autism. Arguments in the appeal were held in December, but a ruling has yet to be made.
Kenvue, however, has stated that nothing is more important to them than the health and safety of people who use their products. In a statement, they emphasized that they have continuously evaluated the science and continue to believe there is no causal link between acetaminophen use during pregnancy and autism. This stance is supported by a study published in 2024, which analyzed the records of nearly 2.5 million siblings born in Sweden from 1995 through 2019 and found no increased risk of autism when their mothers took acetaminophen while pregnant.
Despite this, Kenvue has faced challenges this year. Consumers have cut back amid an uncertain economic climate, and last quarter, organic sales shrank 4.2%, the most since the company was spun out of Johnson & Johnson in 2023. This struggle was compounded by the departure of Chief Executive Officer Thibaut Mongon and the subsequent strategic review aimed at reinvigorating growth.
Doctors generally recommend that women take acetaminophen, rather than ibuprofen, when pregnant. This recommendation is based on the consensus that the risks associated with ibuprofen may outweigh its benefits during pregnancy. However, the potential link between acetaminophen and autism, if proven, could change these recommendations.
HHS, led by U.S. Health Secretary Robert F. Kennedy Jr., has emphasized that they are using "gold-standard science" to investigate the unprecedented rise in autism rates. They have also pushed back against speculation about the contents of the upcoming report, stating that any claims are premature until its release.
As we await the publication of the HHS report, the debate around the safety of Tylenol during pregnancy continues. The potential implications for Kenvue, consumers, and expectant mothers are significant, underscoring the importance of the report's findings.
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