Trump, paracetamol, and the markets: how one statement caused Kenvue’s stock to plummet
23 September 2025 17:45
US President Donald Trump is once again in the spotlight after making a statement about the link between paracetamol and autism. The comment caused a drop in the shares of the pharmaceutical company Kenvue, which produces the popular drug Tylenol. This was reported by the Financial Time, "Komersant Ukrainian" reports.
What happened
Trump urged pregnant women and infants to avoid taking Tylenol.
“Just don’t take it unless you absolutely have to. Fight with all your might to avoid using it,” he said.
Following the announcement, Kenvue’s share price dropped by 7%, reaching its lowest level since the company was spun off from Johnson & Johnson.
Market and regulatory reaction
- Kenvue immediately denied the allegations, stating that there is no scientific evidence of a link between acetaminophen (paracetamol) and autism.
- TheFDA (U.S. Food and Drug Administration) initiated an update of the drug’s labeling. The new recommendations may contain warnings for pregnant women, although there is no evidence of a direct risk.
- Some doctors have received letters of recommendation advising them to limit the use of paracetamol during pregnancy in cases of mild fever.
What scientists say
The scientific journal Nature reminds:
- studies do not confirm a direct link between paracetamol and autism;
- even if there is a risk, it is considered minimal and does not imply a causal relationship.
Experts also note that paracetamol is still considered one of the safest medicines for pain relief and fever reduction during pregnancy.
Why it is important
Tylenol is the most famous brand of paracetamol in the United States and has a large market share. Therefore, even single political statements can affect the market capitalization of pharmaceutical companies.
For investors, this is an example of how political statements can be immediately reflected in the stock market. For society, it is another reminder of the importance of distinguishing scientific data from political rhetoric.
This is not the first time that pharmaceutical companies have experienced the consequences of statements made by high-ranking officials. During the COVID-19 pandemic, markets have already reacted to Trump’s comments about the effectiveness of hydroxychloroquine or other “alternative” treatments.
Now, a similar scenario has been repeated with paracetamol, one of the world’s most widely used medicines.
