Investors Panic as RFK Jr.'s Speculation Shakes Kenvue's Tylenol Empire

Shares of Kenvue Inc. (KVUE) dropped more than 9% on Friday, triggered by reports that U.S. Health and Human Services Secretary Robert F. Kennedy Jr. is preparing a report suggesting a link between the use of acetaminophen—commonly sold as Tylenol—during pregnancy and autism spectrum disorder [2]. The potential report has raised concerns among investors, despite Kenvue’s assertion that there is no scientific basis for the claim [2].

Kenvue emphasized in a statement that it has continuously evaluated the safety of acetaminophen over the past decade, including assessments by the U.S. Food and Drug Administration (FDA), which concluded there is no causal link between the drug and autism [2]. The company added that it appreciates the HHS spokesperson’s characterization of the report as “nothing more than speculation” [2]. Tylenol is one of Kenvue’s most significant revenue generators, contributing roughly $1 billion annually and forming a high-single-digit percentage of the company’s total revenue [6]. As such, any public perception or regulatory action regarding its safety could significantly affect the company’s earnings [6].

The medical community has largely refuted the claim that acetaminophen causes autism. The Society for Maternal-Fetal Medicine has stated that the drug is safe and recommended for use during pregnancy, particularly in treating fever and pain [1]. Dr. Alycia Halladay, chief science officer at the Autism Science Foundation, echoed these sentiments, emphasizing that autism is caused by a combination of hundreds of genetic and environmental factors, and that any link between acetaminophen and autism is based on limited, conflicting, and inconsistent research [1].

The proposed report has drawn broader scrutiny over RFK Jr.’s approach to public health policy. Prominent members of his family, including former Rep. Joe Kennedy III and his sibling Kerry Kennedy, have called for his resignation, citing concerns about his disregard for scientific consensus and the dismantling of key health institutions [4]. During a recent Senate hearing, RFK Jr. faced criticism from both Republican and Democratic lawmakers for his controversial decisions, including the abrupt dismissal of the CDC director [4].

The stock market reaction has not been limited to Kenvue alone. Other pharmaceutical companies that sell over-the-counter products containing acetaminophen, such as Benadryl and Sudafed, have not seen the same level of decline in share price [2]. For example, Haleon PLC (HLN), which markets Excedrin and Robitussin, experienced less than a 1% drop in its stock, while Procter & Gamble (PG), which sells Vicks, DayQuil, and NyQuil, saw minimal losses [2]. This divergence in market response suggests that investors may be differentiating between Kenvue’s brand exposure and its competitors’ in terms of public perception and regulatory risk.

Kenvue’s recent performance has been mixed, with soft sales in its skin health and beauty segments, while its self-care division remains a key growth driver [6]. The company’s shares have faced pressure in the past due to litigation over Tylenol’s alleged link to autism, but these concerns had previously subsided after courts dismissed related lawsuits [6]. Morningstar maintains a fair value estimate of $24.50 for Kenvue, reflecting confidence in its wide economic moat and portfolio of leading consumer health brands [6]. Nevertheless, the recent selloff has created a potential entry point for investors who remain optimistic about the company’s long-term prospects despite short-term volatility [6].

Source: [1] HHS responds to report about autism and acetaminophen (https://www.npr.org/sections/shots-health-news/2025/09/06/nx-s1-5532143/hhs-responds-to-report-about-autism-and-acetaminophen) [2] Tylenol Maker Kenvue's Stock Slumps Following Report ... (https://finance.yahoo.com/news/tylenol-maker-kenvues-stock-slumps-202800462.html) [4] Fellow Kennedys call on RFK Jr. to resign as health secretary (https://www.politico.com/news/2025/09/05/rfk-family-health-secretary-00548624) [6] Kenvue: Stock Tumbles on Kennedy's Pending Report ... (https://www.morningstar.com/stocks/kenvue-stock-tumbles-kennedys-pending-report-tylenol-autism)