(Reuters) -Kenvue shares rose 6% in premarket trading on Tuesday, set to rebound from a record low hit in the previous session as U.S. President Donald Trump linked its popular pain medication Tylenol to autism.
Trump on Monday linked autism to childhood vaccine use and the taking of Tylenol, known generically as paracetamol, by women when pregnant, elevating claims not backed by scientific evidence to the forefront of U.S. health policy.
At least two analysts pointed to the absence of new scientific
evidence as supporting the stock.
"Overall, we see limited judicial risk following today's announcement, but there could be some impact on Tylenol consumption due to negative headlines," Citi analysts wrote.
Shares slumped to an all-time low on Monday, ahead of the conference where Trump repeatedly warned against the use of the painkiller and suggesting that common vaccines not be taken together or so early in a child's life.
Many doctors reject the claim, and Kenvue reiterated there is no scientific link between acetaminophen, the active ingredient in Tylenol, and autism, warning that such suggestions could endanger maternal health.
"The current risk for Tylenol centers around public opinion on the brand," said Canaccord Genuity analyst Susan Anderson.
The Food and Drug Administration said it will update labels on Tylenol and generic versions to reflect evidence of a possible link between acetaminophen use during pregnancy and neurological conditions such as autism and ADHD, but stressed that no causal relationship has been established.
A World Health Organization spokesperson said on Tuesday evidence linking paracetamol use in pregnancy to autism remains inconsistent and that the value of life-saving vaccines should not be questioned.
The European Medicines Agency also confirmed no new evidence that would warrant changes to current guidelines for the medication.
(Reporting by Danilo Masoni, Sriparna Roy in Bengaluru; Editing by Amanda Cooper and Sriraj Kalluvila)
