Tylenol Maker Kenvue Faces Mounting Crisis After Trump Blast

Core Viewpoint - The recent comments by President Trump regarding Tylenol's potential link to autism during pregnancy have reignited legal challenges for Kenvue Inc., the maker of Tylenol, which the company had previously sought to move past [1][4]. Regulatory Changes - The US Food and Drug Administration (FDA) is initiating a label change for acetaminophen products, indicating a higher risk of autism in children when used by pregnant women [2]. - This new warning could serve as significant evidence in lawsuits against Kenvue, even without establishing a direct causal relationship [3][6]. Legal Implications - The FDA's warning may empower consumers to pursue legal action against Kenvue, as it could be used as evidence in court [3]. - Kenvue's spokesperson stated that a causal relationship has not been established, emphasizing the lack of scientific support for the claims [7]. Company Challenges - Kenvue is facing a challenging period, struggling with declining sales and pressure from activist investors for strategic changes [11][15]. - The company has seen its stock price fall by 19% this year, and it has reduced its full-year sales target due to execution issues [10][15]. Strategic Responses - Kenvue is undergoing a strategic review of its brand portfolio, which includes potential sales of smaller skincare brands [13]. - The company is also reorganizing its leadership structure to improve brand management, with changes expected in January [14]. Market Impact - Tylenol is a significant contributor to Kenvue's sales, accounting for mid-to-high single-digit percentages, and the new warnings could negatively impact its brand and consumer behavior [16]. - The broader scientific community has expressed concerns that the government's claims may create confusion for consumers, particularly pregnant women [17].