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Shares of Kenvue (KVUE), the consumer-health spinoff of Johnson & Johnson, tumbled 7.1% to a record low of $17.03 on Monday with the selloff coming ahead of US President Donald Trump’s planned announcement that use of Tylenol — Kenvue’s top-selling pain reliever — during pregnancy could contribute to autism risk, according to reports.

Later in the day, the stock recovered some losses, and was trading at $17.34 at 1:16 pm, down by about 5.5%.

Politico, citing senior administration officials, reported that Trump intends to advise pregnant women to use Tylenol, or its generic equivalent acetaminophen, only in cases of high fever.

The same officials said Trump would also highlight leucovorin, a cancer and anemia drug, as a potential therapy for people with autism.

The White House is expected to make the announcement later on Monday, following Trump’s weekend remarks that his administration had uncovered new findings about autism.

“Autism is totally out of control,” he told reporters on Friday. “I think we, maybe, have a reason why.”

Market fallout and Kenvue’s response

The news made Kenvue the worst performer in the S&P 500 on Monday, extending a slump that began earlier this month when the Wall Street Journal reported Health Secretary Robert F. Kennedy Jr. was preparing to link acetaminophen use in pregnancy to autism.

In a statement, Kenvue rejected the claims.

“We believe independent, sound science clearly shows that taking acetaminophen does not cause autism,” the company said.

“We strongly disagree with any suggestion otherwise and are deeply concerned with the health risk this poses for expecting mothers.”

Tylenol, along with generic acetaminophen, is one of the most widely used medications for pain and fever in pregnancy.

Unlike ibuprofen, which carries risks of miscarriage and birth defects, acetaminophen has long been considered safe for expectant mothers.

Last week, Kirk Perry, interim CEO of Tylenol maker Kenvue, privately urged Kennedy not to cite Tylenol as a cause, according to The Wall Street Journal.

A polarising scientific debate

The Centers for Disease Control and Prevention has reported a sharp rise in autism diagnoses, with one in 31 American 8-year-olds diagnosed in 2022 compared with one in 150 in 2000.

But whether acetaminophen plays a role remains unsettled.

A review published last month in BMC Environmental Health suggested prenatal exposure to acetaminophen may affect neurodevelopment and recommended judicious use.

Yet large-scale studies have cast doubt on a causal link.

A Swedish study of 2.5 million children in 2024 found no connection between acetaminophen use during pregnancy and conditions such as autism or ADHD.

A 2025 meta-analysis of 46 studies suggested an association, but researchers from Mount Sinai, Harvard, and other institutions emphasised that confounding factors — including genetics, illness, and environmental influences — may explain the findings.

They advised continued use of acetaminophen when medically necessary, at the lowest effective dose.

Political and legal implications

Trump’s decision to elevate the issue marks the first time the US government would officially link acetaminophen to autism, contradicting decades of medical guidance.

Administration officials told Politico that the internal debate had been divisive, with Kennedy himself reportedly reluctant to issue a broad public warning.

Kenvue already faces lawsuits from families who allege Tylenol caused their children’s autism or ADHD.

A federal judge dismissed many of the claims in 2023 for lack of evidence, but new state-level lawsuits continue.

The controversy also revives scrutiny of Tylenol’s troubled history.

The brand endured the 1982 cyanide poisonings that killed seven people and led to widespread tamper-proof packaging reforms, as well as quality-control recalls in 2009.

UK experts warn against “fearmongering”

Outside the US, health authorities have been quick to push back.

In the UK, experts described the reports as “fearmongering,” stressing that paracetamol — the British name for acetaminophen — remains the recommended first-choice painkiller in pregnancy.

“The most important study, of 2.4 million births in Sweden, found no relationship between prenatal paracetamol exposure and autism, ADHD or intellectual disability,” said Dr. Monique Botha, associate professor at Durham University.

“This suggests no causal effect.”

UK’s National Health Service continues to advise that paracetamol is safe in pregnancy when used as directed.

A turning point for Kenvue

The latest controversy poses a new reputational challenge for Kenvue, which was spun out of Johnson & Johnson in 2023.

Alongside Tylenol, its portfolio includes Band-Aid and Johnson’s Baby Shampoo.

As Trump prepares his announcement, Kenvue faces mounting investor pressure, legal risk, and potential consumer mistrust.

The outcome could determine whether Tylenol weathers yet another crisis — or enters one of its most difficult chapters since its 1980s recall scandals.

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