Kenvue Stock (KVUE) Tanks on Tylenol-Autism Study Bombshell
Pharma giant Kenvue gets hammered after research links flagship product to developmental disorders—traders dump shares as liability fears mount.
Market Bloodbath
KVUE shares cratered double-digits following publication of controversial study connecting acetaminophen use during pregnancy with increased autism risk. The selloff vaporized billions in market cap within hours—classic knee-jerk reaction meets potential litigation nightmare.
Damage Control Mode
Company executives scramble to contain fallout, issuing statements questioning methodology while reminding investors of Tylenol's decades-long safety record. Too late—the algos already triggered stop-loss cascades across every major exchange.
Meanwhile, ambulance-chasing law firms immediately launched 'investigations' into potential shareholder claims—because nothing moves faster than lawyers smelling settlement money. Another reminder why traditional pharma stocks remain casino bets disguised as investments.
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The report is also expected to recommend a folate-derived medicine as a potential treatment for some symptoms of the developmental disorder. The Department of Health and Human Services is expected to publish the report later this month.
In response, Kenvue issued a statement stating that there is no proven causal link between acetaminophen (Tylenol’s active ingredient) and autism.
Kenvue’s Struggles
The news adds to an already challenging year for Kenvue. Throughout 2025, the company has faced operational challenges, including weaker-than-expected sales for some products and headwinds from consumer spending and retailer behavior.
Also, leadership uncertainty has added to the pressure. The appointment of Kirk Perry as interim CEO in July was followed by activist investor pressure for an overhaul. The company is now reviewing its business strategy and capital allocation to identify ways to boost shareholder value.
Moreover, KVUE is dealing with about $150 million in tariff costs this year, along with slower sales in China due to changes in its distributor network and weak demand during winter.
Despite these setbacks, management remains optimistic about a stronger second half, with support from new product launches and updated marketing efforts.
What Is the Price Prediction for Kenvue Stock?
On TipRanks, KVUE stock has received a Moderate Buy consensus rating, with four Buys and nine Holds assigned in the last three months. The average Kenvue stock price target is $23.54, suggesting an upside potential of 27.93% from the current level.
