Stock Spinoffs·2025-09-25 21:49Core Viewpoint - Kenvue, the consumer health spinoff from Johnson & Johnson, is facing significant challenges, including a recent stock decline due to controversial claims regarding Tylenol and ongoing activist investor pressure [1][4][13] Company Overview - Kenvue was established as the world's largest pure-play consumer health company after its separation from Johnson & Johnson in August 2023, allowing J&J to focus on Pharmaceuticals and MedTech [2] - The company boasts strong brands like Tylenol, Band-Aid, Neutrogena, Aveeno, and Listerine, which are positioned as reliable cash-flow generators for dividend-focused investors [2][10] Recent Controversies - The stock price of Kenvue dropped over 7% intraday following allegations from President Trump and Robert F. Kennedy Jr. that Tylenol use during pregnancy could lead to autism, despite these claims being dismissed by the FDA and medical experts [1][4] - The controversy surrounding Tylenol has raised concerns about consumer perception, healthcare guidance, and potential litigation, particularly as Tylenol is Kenvue's flagship product [5][11] Leadership and Governance - Kenvue's CEO Thibaut Mongon was ousted in July 2025 due to criticism over company execution, particularly in the Skin Health & Beauty division, with Kirk Perry appointed as interim CEO [6] - The leadership change followed a proxy settlement with activist investor Starboard Value, which gained three board seats and has been pushing for strategic changes [7] Activist Investor Pressure - Activist investors, including Starboard, Third Point, and TOMS Capital, are advocating for cost-cutting measures, portfolio focus, and strategic alternatives if performance does not improve [8] - The recent Tylenol controversy is viewed by activists as indicative of Kenvue's lack of resilience, emphasizing the need for a new approach to enhance returns [9] Financial Performance and Market Position - Kenvue reported over $15 billion in annual revenue and has a strong global distribution network, with leading market positions in pain relief and other consumer health categories [10] - Despite strong fundamentals, the company faces volatility in stock performance due to shifts in consumer trust and perception, particularly in light of the recent allegations against Tylenol [11] Future Considerations - Investors are advised to monitor retail sales data, healthcare guidance changes, and the ongoing activist campaigns as indicators of Kenvue's market performance and consumer demand [15]