In a surprising turn of events that has rattled investors and reignited debates over pharmaceutical safety, shares of Kenvue Inc., the maker of Tylenol, plunged as much as 10% on Monday following reports that the White House is preparing to announce a potential link between the popular pain reliever’s use during pregnancy and autism spectrum disorder. The announcement, expected from the Department of Health and Human Services under Secretary Robert F. Kennedy Jr., stems from a forthcoming report that could advise pregnant women to avoid acetaminophen, Tylenol’s active ingredient, particularly in the early stages of pregnancy.

The stock’s decline wiped billions from Kenvue’s market value, reflecting broader concerns about regulatory fallout and potential lawsuits. Analysts noted that while scientific consensus on the link remains inconclusive, the political weight of the Trump administration’s involvement has amplified market volatility. Kenvue, spun off from Johnson & Johnson in 2023, has repeatedly denied any causal connection, stating in a recent release that “there is no causal link between acetaminophen use during pregnancy and autism,” as reported by the BBC.

Regulatory Scrutiny Intensifies

Kennedy, a vocal critic of certain medical practices, has long advocated for reexamining environmental factors in autism, and this report appears to build on that stance. Sources familiar with the matter told the Business Insider that the HHS document may highlight studies suggesting folate deficiencies combined with acetaminophen exposure could heighten risks, potentially recommending alternatives like leucovorin for treatment. This comes amid ongoing litigation, with over 100 lawsuits already filed against Kenvue alleging similar harms.

Wall Street’s reaction was swift, with Kenvue hitting a 52-week low of $17.14 in pre-market trading, as detailed in a report from Parameter. Investors are bracing for possible FDA advisories or labeling changes, which could dent sales of Tylenol, a brand generating billions annually. One banker at Canaccord Genuity, surveying social media sentiment, found mixed reactions even among Kennedy’s “Make America Healthy Again” supporters, according to Fortune.

Corporate Lobbying and Political Backdrop

Behind the scenes, Kenvue’s leadership has actively lobbied to temper the report’s language. Interim CEO Kirk Perry reportedly met with Kennedy to dissuade him from emphasizing Tylenol’s role, per the Reuters, citing threats of legal action if the claims proceed. This underscores the tension between corporate interests and the administration’s health agenda, with President Trump teasing a “major medical announcement” that could reshape public perceptions.

Public sentiment on platforms like X has been polarized, with posts amplifying both alarm and skepticism. Some users hailed the potential vindication of long-ignored research, while others questioned the science, contributing to the stock’s downward pressure. As Investopedia noted, the drop mirrors earlier dips when rumors first surfaced in early September, erasing gains from Kenvue’s consumer health portfolio.

Broader Implications for Pharma Industry

The episode highlights vulnerabilities in the over-the-counter drug sector, where political narratives can swiftly influence consumer behavior. Analysts at CNBC predict that if the report leads to widespread avoidance of acetaminophen, it could boost demand for natural alternatives, pressuring competitors like Bayer and Pfizer.

For industry insiders, this serves as a case study in risk management amid politicized health policy. Kenvue’s path forward may involve bolstering scientific defenses or diversifying products, but the immediate fallout underscores how quickly unproven links can disrupt markets. As the White House’s announcement unfolds, stakeholders will watch closely for evidence-based resolutions to this contentious issue.