Kenvue, J&J Retail Traders Cautious As US Health Officials Reportedly Plan To Announce Tylenol Links To Autism

The U.S. government is widely expected to link Tylenol to autism, advising pregnant women against its use, Monday, according to media reports. The development is keeping retail investors on the edge for its maker, Kenvue, and associated company Johnson & Johnson, according to Stocktwits data.

Tylenol is an acetaminophen-based over-the-counter medicine for reducing pain, allergies, cold, and fever. The popular tablets are produced, marketed, and sold by Kenvue, which spun off from J&J in 2023, and rake in about $1 billion annually, a high-single-digit percentage of the firm’s total revenue, according to a Morningstar analyst.

U.S. officials are expected to hold a press conference on autism on Monday; in the run-up, President Donald Trump had said: “We think we found an answer to autism… There’s obviously something really wrong, we think we know what that is.”

The Washington Post reported on the weekend that officials will promote the drug leucovorin as a potential autism treatment. Leucovorin is a prescription medication typically used in cancer treatment to counter the harmful side effects of other drugs.

Earlier this month, the Wall Street Journal reported U.S. health officials’ internal view regarding Tylenol. The news sent Kenvue’s shares down 9.4% on Sept. 5. Kenvue said on Sunday that “independent, sound science” shows taking acetaminophen does not cause autism.

“We strongly disagree with any suggestion otherwise and are deeply concerned with the health risk this poses for expecting mothers,” the company said in a statement.

Several Stocktwits users, on both Kenvue and J&J streams, predicted steep declines for the stocks on Monday. Twenty-four-hour message volume on the tickers surging 300% and 150%, respectively.

Retail sentiment for both KVUE and JNJ was ‘neutral’ at the time of writing, indicating significant levels of caution among traders ahead of Monday’s market open.

“$JNJ 5-year chart looks like a heartbeat… she’s gonna drop and flatline tomorrow,” said a user.

Another said: “$KVUE could be a buying opportunity if we see an overreaction.”

Kenvue’s main brands include Tylenol, Motrin, Listerine, Neutrogena, Aveeno, and Band-Aid.

Kenvue shares are down 14.1% year-to-date; J&J stock is up 22%. 

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