Why Is Kenvue Stock Rising Premarket Today?

Kenvue shares traded 2.5% higher in premarket on Wednesday as investors took comfort from reassurances by global health agencies that Tylenol remains safe, with no new evidence linking its use in pregnancy to autism. 

South Korea’s drug regulator said it would seek information from companies after U.S. President Donald Trump’s comments linking Tylenol to autism. 

“Since the U.S. government’s announcement contained little substance, we have no additional comments,” Reuters reported, citing South Korea’s food and drug safety ministry.

The news follows a rebound on Tuesday when Kenvue rose 1.6% in regular trade and another 0.8% after hours. That rally came after the U.S. Food and Drug Administration stopped short of banning acetaminophen and instead announced it will add a pregnancy-related autism warning to product labels while alerting physicians nationwide. The FDA noted that no causal link has been established between the two.

Despite the FDA’s caution, plaintiffs’ lawyers said the label change could revive litigation that was dismissed by a federal court last December. Citi said the legal risks appear to be limited, while Evercore ISI cut its price target to $18. Barclays said the recent selloff looks overdone even in the unlikely event of U.S. acetaminophen sales being reduced to zero.

Kenvue, led by interim CEO Kirk Perry, is already facing slowing sales, pressure from activist investors, and a review of its brand portfolio that could result in divestitures of its smaller skincare lines. 

Tylenol remains its largest brand and contributes a mid-to-high single-digit share of revenue. Analysts warn the FDA’s move could erode consumer trust and weigh on demand, especially among pregnant women, while also creating confusion for patients who need fever treatment during pregnancy.

The situation is being described as Kenvue’s most serious reputational challenge since the Tylenol cyanide poisonings of the 1980s.

On Stocktwits, retail sentiment for Kenvue was ‘bullish’ heading into Wednesday’s session, following a 270% surge in 24-hour message volume.

Kenvue’s stock has declined 17% so far in 2025.

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