CNBC’s Jim Cramer warned Tuesday that President Donald Trump is creating a “nightmare of potential litigation” for consumer health giant Kenvue Inc. KVUE, sending the company’s stock tumbling.
Check out KVUE’s stock price here.
Trump Anticipates Negative Impact Of KVUE’s Medicine On Pregnant Women
Cramer’s comments highlight intense investor fears after reports emerged that the administration is set to publicize a potential link between the use of Tylenol during pregnancy and an increased risk of autism. Shares of Kenvue, the maker of Tylenol, plunged nearly 8%.
The market sell-off followed a report from The Washington Post indicating that administration health officials plan to raise formal concerns about acetaminophen, the active ingredient in Tylenol.
President Trump is expected to publicly discuss data suggesting that pregnant women who take the popular pain reliever increase the risk of their children developing autism.
On the social media platform X, Cramer stated, “Kenvue with a plaintiffs’ problem the likes of which i do not envy. A sitting president creates a nightmare of potential litigation over Tylenol.”
See Also: Kenvue Stock Is Sliding Today: What’s Fueling The Sell-Off?
Kenvue Defends The Impact Of Tylenol On Patients
In response to the growing controversy and potential legal onslaught, Kenvue has proactively defended its flagship product. The company, which was spun off from Johnson & Johnson JNJ, has updated its website with a statement asserting that “credible, independent scientific data continues to show no proven link between taking acetaminophen and autism.”
The statement signals the company’s readiness to combat both the scientific claims and the expected lawsuits.
KVUE In Spotlight After Spin-Off From JNJ
The spotlight on the issue presents a severe test for the independent Kenvue, which spun off from JNJ in 2023. While its portfolio is diversified with major brands like Listerine, Band-Aid, and Bengay, Tylenol remains one of its most recognizable and vital products.
The prospect of facing a “plaintiffs’ problem,” as Cramer termed it, threatens to mire the company in expensive, brand-damaging legal battles for the foreseeable future.
Price Action
The stock fell 7.47% on Tuesday to $16.97 per share and rose 4.42% in after-hours. It was down 20.25% year-to-date and 26.28% over the year.
Benzinga’s Edge Stock Rankings indicate that KVUE maintains a weaker price trend in the short, medium, and long terms. However, the stock’s value ranking is relatively poor. Additional performance details are available here.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and the Nasdaq 100 index, respectively, rose on Monday. The SPY was up 0.47% at $666.84, while the QQQ advanced 0.59% to $602.20, according to Benzinga Pro data.
On Tuesday, the futures of the Dow Jones, S&P 500, and Nasdaq 100 indices were mixed.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga
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