Shares of Kenvue (NYSE:KVUE) slipped 5.5% in pre-market trading on Monday following a report by the Washington Post that the Trump administration is set to raise concerns about a possible connection between Tylenol’s active ingredient and autism risk.
The report indicates that federal health authorities may advise pregnant women to avoid acetaminophen—the active ingredient in Tylenol—during early pregnancy unless necessary for fever. Officials have been reviewing research suggesting a potential link between early prenatal acetaminophen use and increased autism risk in children.
The announcement, expected Monday, could hit Kenvue hard, as Tylenol is one of its flagship brands and among the most widely used medications worldwide. The brand is already facing litigation related to autism claims.
Bloomberg Intelligence analyst Diana Gomes commented: “Any reduced demand for Tylenol as a result of Trump administration links to autism, as reported by the Washington Post, will make Kenvue’s return to EPS growth next year more challenging.”
The Trump administration is also reportedly set to highlight leucovorin, a drug usually used to counteract medication side effects, as a potential treatment for autism. President Trump previewed the forthcoming announcement on Sunday, calling it “one of the biggest announcement[s] … medically, I think, in the history of our country.”
Meanwhile, the National Institutes of Health (NIH) is launching a new autism data science initiative, funding 13 research teams to study the causes and potential treatments for autism.
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