Kenvue stock rose in European trading, rebounding from a record low after investors reacted to unproven claims from U.S. President Donald Trump linking Tylenol to autism risk during pregnancy. The initial market reaction saw Kenvue's shares drop approximately 7.5% to an all-time low.
Kenvue reiterated that there is no scientific link between acetaminophen, the active ingredient in Tylenol, and autism, warning that such suggestions could pose risks to maternal health. Health agencies in the European Union and the United Kingdom also confirmed the safety of paracetamol during pregnancy.
The U.S. Food and Drug Administration (FDA) stated it will update labels on Tylenol and generic versions to reflect a possible link between the drug's use during pregnancy and neurological conditions such as autism. However, the agency emphasized that no causal relationship has been established, providing a mixed signal to the market.
Tylenol generates approximately $1 billion in annual sales for Kenvue, making any perceived threat to its safety profile a significant concern for the company. The market's rebound suggests a cautious optimism, but the FDA's intent to update labels indicates ongoing regulatory scrutiny.
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