Kenvue stock rallies off record low after Trump press conference on alleged Tylenol-autism link

By Steve Goldstein

Stock bounces, a day after leading the S&P 500's losers, as litigation risk appears reduced after Trump's speech

U.S. President Donald Trump on September 22, 2025 urged pregnant women not to take Tylenol over an unproven link to autism, and urged major changes to the standard vaccines given to babies.

Kenvue stock rallied on Tuesday off a record low, after a White House press conference didn't offer fresh evidence that could be used by plaintiffs to sue the maker of Tylenol for its alleged link to autism.

The stock on Monday had tumbled 7.5% ahead of the press conference with President Donald Trump and Health and Human Services Sec. Robert F. Kennedy Jr.

But on Tuesday, the stock (KVUE) bounced 4% in morning trading.

Analysts at Citi say the news could have been worse for the company, even as Trump urged pregnant women not to take the drug and as the Food and Drug Administration will initiate a safety label change.

"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.

They noted that Tylenol accounts for about 10% of Kenvue's global sales and between 12% and 15% of its operating profit. "Even assuming a 10% sales/profit decline for the brand, we'd estimate a modest -$40M to -$50M profit impact, or 1-2 cents to EPS (1-2%)," they said.

Analysts at Evercore, however, say the FDA label change undermines Kenvue's ability to turn Tylenol into a global brand and drive "premiumization."

The European Medicines Agency said it's not changing its recommendation for using paracetamol, which is the scientific name for Tylenol. It says it can be used during pregnancy but recommended using at its lowest dose for the shortest possible time.

Meanwhile, even with Tuesday's bounce, Kenvue's stock has still lost 14.1% since reports first surfaced on Sept. 5 that the Trump administration intended to link Tylenol use to autism.

There's a chance, according to Raymond James analyst Chris Meekins, that Kenvue sues the Trump administration for damages from its claims.

"We may see legal challenges to these claims as Kenvue announced it strongly disagrees with the claims that their product is linked to autism," Meekins wrote in a note to clients.

Tomi Kilgore contributed.

-Steve Goldstein

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09-23-25 1033ET