Positive News Related to Tylenol Litigation

This week, KVUE’s upward trend persists with positive developments in the Tylenol-related lawsuits. On Monday, the judge ruled in favor of KVUE’s motion to exclude the plaintiffs’ expert evidence and opinions on Autism Spectrum Disorder, ADHD, and biological plausibility. This ruling effectively dismantles the plaintiffs’ case. The parties are scheduled to meet to discuss next steps and are required to file a joint status letter by January 12.

In September, I wrote: “Kenvue (KVUE) continues to be weak in the wake of concern regarding its exposure to lawsuits related to Tylenol. Some studies have suggested a possible link between prenatal exposure to acetaminophen and a higher risk of autism spectrum disorder (“ASD”) and attention-deficit/hyperactivity disorder (“ADHD”).” However, most health providers believe there is no causal link between acetaminophen and ASD and ADHD. The FDA recently stated, “the limitations and inconsistent findings of current observational studies of [acetaminophen] and neurobehavioral and urogenital outcomes are unable to support a determination of causality.” I will continue to research the case but currently believe concerns are overblown. KVUE trades at a large discount to all consumer healthcare companies and that discount should close as concern over the lawsuits fades.”

Kenvue still trades a discount to its peers and should re-rate to the mid $20 range as concerns over the lawsuits continue to fade.