Kenvue (NYSE:KVUE) saw its shares rise in premarket trading on Tuesday, recovering from a record low the day before, even after U.S. President Donald Trump linked Tylenol use during pregnancy to an increased autism risk during a White House press briefing.
The stock climbed roughly 6% in premarket trade.
Kenvue shares had fallen 7.5% on Monday following Trump’s comments, which connected autism both to childhood vaccine use and to pregnant women taking Tylenol—claims that are not scientifically supported. Trump advised parents and expectant mothers to avoid the painkiller and suggested reconsidering common vaccine schedules.
In response, FDA Commissioner Marty Makary announced that the agency would begin updating acetaminophen’s safety label, citing studies suggesting a potential link to 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 lowered their price target for Kenvue from $23 to $18 following the developments.
“The updated sum-of-the-parts valuation solves for $15-28 per share and we lower our price target to $18,” the firm said, reflecting the midpoint of the low and medium valuations in its analysis.
Meanwhile, Citi analysts noted that they expect Kenvue shares to recover, emphasizing the lack of new scientific evidence supporting the White House claims.
“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 experts broadly dispute any causal link, according to Reuters. Kenvue also reaffirmed that there is no scientific evidence connecting acetaminophen, the active ingredient in Tylenol, to autism, warning that such assertions could endanger maternal health.
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