Kenvue (KVUE) Shares Plunge 4.27% to Record Low Amid Regulatory Risks, Autism Warnings

Kenvue Inc. (KVUE) shares fell to a record low on Thursday, with an intraday decline of 4.27% and a two-day cumulative drop of 6.21%. The stock continued its downward spiral as investors reacted to escalating regulatory and reputational risks surrounding its flagship Tylenol brand.

Market pressure intensified following reports that the Trump administration planned to warn about a potential link between acetaminophen (Tylenol’s active ingredient) and autism risk during pregnancy. The anticipated guidance, which advised pregnant women to avoid the drug unless medically necessary, amplified existing legal challenges against Kenvue and fueled demand concerns for its top-selling over-the-counter medication. Analysts highlighted the threat to earnings, as Tylenol accounts for a significant portion of the company’s revenue.

Regulatory scrutiny deepened with the NIH launching a new autism research initiative, shifting public focus toward alternative treatments. This development, combined with lawsuits alleging product liability, eroded investor confidence. Citi and Evercore ISI analysts cut price targets to $20 and $23, reflecting the heightened uncertainty. Despite strong revenue performance—$15.45 billion in sales and a 58% gross margin—concerns over profitability margins and liquidity ratios (current ratio 1.0, quick ratio 0.6) underscored structural vulnerabilities.

Strategic efforts by Kenvue leadership to address claims, including high-profile meetings, failed to quell skepticism. The stock’s 16-week low at $17.33 signaled broader caution, despite favorable valuation metrics like a P/E ratio of 32.75. Analysts emphasized the need for transparent safety demonstrations and regulatory clarity to stabilize the stock, highlighting the sector’s susceptibility to reputational and compliance risks tied to mass-market products.