Kenvue Inc. Shares Plunge 2.4% to Record Low Amid Trump's Autism Claims, FDA Warnings and Legal Challenges

Kenvue Inc. (KVUE) shares fell to a record low on October 2, with an intraday decline of 2.40%, extending a four-day losing streak that has erased 4.20% of its value. The selloff follows a confluence of political, regulatory, and legal pressures linked to its flagship Tylenol brand, which has triggered investor anxiety amid evolving public health debates.

The Trump administration’s recent claims linking prenatal Tylenol use to autism risks have intensified scrutiny. Former President Donald Trump’s assertion that acetaminophen is a “big factor” in autism, amplified by Health Secretary Robert F. Kennedy Jr., has fueled public concern despite scientific consensus refuting a direct link. The FDA’s proposed label updates cautioning against prenatal Tylenol use and a letter advising physicians to limit prescriptions have further unsettled markets, compounding fears of consumer backlash and regulatory overreach.

Legal challenges remain a persistent overhang. Over 1,000 potential lawsuits alleging autism and ADHD risks from Tylenol use have resurfaced amid renewed political rhetoric. While courts previously dismissed similar claims for lack of evidence, the administration’s publicized focus on the issue has raised litigation risks. Analysts warn that any shift in public perception could pressure Kenvue to revise marketing strategies or face costly legal battles, compounding its operational challenges.

Internally, the company has struggled to regain momentum since its 2023 spinoff from Johnson & Johnson. The ousting of CEO Thibaut Mongon in July and an ongoing strategic review highlight leadership instability. With Tylenol accounting for 10% of revenue, any erosion of consumer trust in the brand could disproportionately impact performance. Despite a 5.1% dividend yield, investors remain skeptical about Kenvue’s ability to navigate regulatory and legal uncertainties while executing operational improvements.

Public health experts and medical groups have criticized the administration’s warnings as lacking robust scientific backing, creating a polarized debate. Kenvue has defended acetaminophen as a critical treatment for pregnant women with few alternatives but faces mounting pressure to reconcile political rhetoric with scientific evidence. The unresolved tension between regulatory caution and consumer demand underscores the company’s precarious position as it balances legal, reputational, and strategic risks.