A report suggesting a potential link between a widely used over-the-counter drug and autism has triggered significant market volatility, leading to a sharp decline in shares of its manufacturer. The controversy centers on an anticipated report from the Department of Health and Human Services (HHS), led by Secretary Robert F. Kennedy Jr., which reportedly explores a potential association between prenatal use of Tylenol, containing acetaminophen, and autism spectrum disorder.
The Wall Street Journal reported that Secretary Kennedy’s HHS is anticipated to release a report this month, which is expected to suggest a connection between prenatal acetaminophen use and low folate levels as potential factors in autism. This speculation immediately impacted Kenvue, the parent company of Tylenol maker McNeil Consumer Healthcare, whose shares declined by more than 14% in Friday afternoon trading following the news.
Kenvue Shares Decline Amid Report Speculation
Tylenol is a ubiquitous over-the-counter drug, widely used for pain relief and fever reduction, with its active ingredient, acetaminophen, found in numerous similar medications. This potential link challenges established medical consensus, which has long affirmed the safety of acetaminophen for pregnant women, impacting both public trust and market perception.
Kenvue has vehemently rejected the claims foreshadowed by the Wall Street Journal. A company spokeswoman emphasized, “Nothing is more important to us than the health and safety of the people who use our products. We have continuously evaluated the science and continue to believe there is no causal link between acetaminophen use during pregnancy and autism.” This strong rebuttal underscores the high stakes for the company and the pharmaceutical industry, which relies heavily on public trust in product safety.
Secretary Kennedy’s Autism Initiative and Criticism
Secretary Kennedy has made the investigation into autism’s causes a priority since his confirmation, outlining an ambitious initial timeline for definitive conclusions. At a Cabinet meeting earlier this spring with President Donald Trump, Kennedy stated, “By September, we will know what has caused the autism epidemic.” This ambitious timeline and the use of the term “epidemic” drew sharp criticism from the Autism Society of America, which deemed such language:
- harmful
- misleading
- unrealistic
and stigmatizing.
While Kennedy attributes rising autism rates to environmental factors, the Centers for Disease Control and Prevention (CDC) often cites improved diagnostic practices. The forthcoming HHS report, reportedly compiled largely by the National Institutes of Health (NIH) based on existing research, is also expected to propose other potential causes and areas for future scientific inquiry. An HHS spokesperson, however, clarified that any claims about the report’s contents are speculative until its official release, emphasizing, “We are using gold-standard science to get to the bottom of America’s unprecedented rise in autism rates. Until we release the final report, any claims about its contents are nothing more than speculation.”
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.