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In deciding to buy the company behind Tylenol, the consumer products giant Kimberly-Clark is betting that the product can withstand an extraordinary attack from President Trump and his administration. Top officials have singled out Tylenol, making unproven claims that the use of acetaminophen products during pregnancy can cause autism. The Trump administration’s allegations have helped prompt Texas to sue Kenvue, the maker of Tylenol, last week, the first such lawsuit by a state. They could potentially breathe new life into lawsuits filed by hundreds of plaintiffs in state and federal courts by families who claim their children developed neurodevelopmental disorders, including autism and A.D.H.D., after acetaminophen use during pregnancy. The furor has created a public-relations and financial nightmare for Kenvue, a two-year-old spinoff that absorbed Johnson & Johnson’s consumer heath brands. In addition to Tylenol, Kenvue sells other well-known products including Band-Aid, Listerine, Neutrogena and Johnson’s Baby Shampoo. In July, Kenvue said it was reviewing its strategy to improve its financial performance. Talks with Kimberly-Clark and other prospective suitors began after that, three people familiar with the negotiations said. Kimberly-Clark had long been interested in Kenvue’s business, given the prestige of brands like Band-Aid, the overlap in target customers and the potential to streamline costs, two of the people said. The deal, for $40 billion, was also a bet that the market had overreacted to the risk of more scrutiny from Washington, one of the people said. Amid the uproar about Tylenol and autism, Kenvue’s stock fell 30 percent over the past eight weeks, perhaps making the acquisition more attractive for Kimberly-Clark. The turmoil helped Kimberly-Clark push for a deal that valued Kenvue at a discount to its peers. Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while we verify access. Already a subscriber? Log in. Want all of The Times? Subscribe.
