Kenvue, the new consumer brands company that recently spun off from Johnson & Johnson, is soaring once again in stock price. This continued recovery follows the massive drop in interest generated by former President Donald Trump’s comments that killed the project. At one such event, Trump warned pregnant women not to use Tylenol—the name used in the U.S. for acetaminophen, an over-the-counter pain reliever. He equally implored mothers to refrain from administering this drug to newborns. Kenvue was quick to deny any accusation linking Tylenol to autism. They pointed out how important the medicine is for treating pain and fever in pregnant women.
In May of this year, Johnson & Johnson completed the spin off of Kenvue. This transition sought to improve operational effectiveness for both Kenvue and its former parent company, Johnson & Johnson, by permitting them to function as separate companies. Since its inception Kenvue has been under a microscope. Its most well known product, Tylenol, has been the subject of at least 152 lawsuits alleging safety and efficacy in relation to autism. Unfortunately, most of these lawsuits have been tossed out. Kenvue strongly denies that any scientific evidence links a connection.
On Monday—one day after Trump made his comments— Kenvue’s stock plummeted by 7.5%. However, on Tuesday morning, in premarket trading, the stock rallied sharply and reclaimed the majority of its losses. Investors cheered at the news, citing a lack of new scientific evidence to back up claims levied against the medication. Filippo Falorni, an industry analyst, noted that there are risks associated with Tylenol as a result of recent bad press. The way the market has reacted shows just how confident it is in Kenvue’s resilience.
Kenvue has gone out of its way to be transparent about safety in the lead up to Tylenol. The company further cautioned that the drug be used during pregnancy only when indicated. Without access, they may be forced to turn to more dangerous options such as going without to suffer through a fever or choosing more dangerous OTC substitutes. This underscores just how vital a role Tylenol plays in pain management during pregnancy.
The current controversy over Tylenol recalls upon the nearly indescribable tragedy that struck in the late 1980s. At the time, seven in the Chicago area had died after taking the painkiller adulterated with cyanide. This caused a nationwide scare and eventually led to sweeping changes in safety regulations, requiring that all over-the-counter medication packages use child-resistant packaging.
