Kenvue Stock Plummets Amid Tylenol Autism Lawsuit & Trump's Fiery Call to Arms

Kenvue (KVUE), the consumer health giant behind Tylenol, found its shares hitting a new all-time low of $19.46 today, as a high-stakes lawsuit linking the popular pain reliever to autism continues to send ripples through the market. This dramatic dip wasn't just a quiet market adjustment; it unfolded against a backdrop of former U.S.

President Donald Trump urging pregnant women to “fight like hell” against Tylenol, amplifying the controversy.

Trump's controversial remarks, made during a campaign speech in Iowa, underscored his concerns about the alleged connection between acetaminophen use during pregnancy and developmental disorders like autism.

His intervention adds a politically charged dimension to an already complex legal battle facing Kenvue, which was spun off from Johnson & Johnson (J&J) in August 2023.

At the heart of the legal storm is the accusation that J&J, prior to the Kenvue spin-off, failed to adequately warn pregnant women about the potential risks of autism from using acetaminophen.

The first bellwether trial in this multi-district litigation (MDL), encompassing over 400 cases, is slated for January 2024. The outcome of this pivotal trial is expected to have significant repercussions for Kenvue's financial performance and public image.

Despite the stock's plummeting trajectory and the intensifying legal pressure, a curious trend has emerged among retail investors.

Data from Vanda Research indicates a surprising bullishness, with retail investors reportedly injecting $5 million into Kenvue shares over the past four weeks, seemingly buying the dip. This contrasts sharply with the broader market's reaction, which has seen Kenvue's market capitalization shrink from a robust $41.8 billion in August to $37.5 billion today.

The roots of the lawsuit trace back to studies, including one published earlier this year in the American Journal of Epidemiology, which suggested a link between acetaminophen use during pregnancy and increased risks of autism and ADHD in children.

The plaintiffs argue that Kenvue (and previously J&J) knowingly marketed Tylenol without sufficient warning labels, allegedly despite being aware of potential risks to fetal development.

This isn't merely a corporate legal tussle; it's a high-stakes battle for Kenvue, navigating not just a labyrinthine legal landscape but also the volatile court of public opinion, now further inflamed by the vocal involvement of prominent figures like Donald Trump.

As the January trial approaches, all eyes will be on Kenvue as it grapples with a challenge that could redefine its future.