Kenvue Updates On Tylenol Lawsuits

December 13, 2023 Update

1) Kenvue (KVUE) – This week, KVUE rallied on positive developments related to lawsuits related to Tylenol. 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.

This week, a judge heard from the plaintiffs. She is trying to determine whether the plaintiffs have enough expert evidence to prove their claims and to determine the admissibility of the evidence. The consensus is that the hearing went in Kenvue’s favor and the judge may rule by the end of the year. Kenvue trades a discount to its peers and should re-rate to the mid $20 range as concerns over the lawsuits fade.