Kenvue acquired for record $49bn after Tylenol autism claims drive share slump

Kenvue, the American pharmaceutical firm behind the well-known paracetamol brand Tylenol, has been acquired for $49 billion (£37 billion) by consumer goods conglomerate Kimberly-Clark. The deal follows a tumultuous period for Kenvue after a series of claims by Donald Trump alleged a link between Tylenol use during pregnancy and increased autism risk, which resulted in heavy share price declines.

The acquisition marks the largest buyout of a US consumer goods company on record, eclipsing Mars’ previous $35.9 billion takeover of Kellanova. Kimberly-Clark, best known for brands such as Kleenex, Huggies, and Andrex, offered to purchase Kenvue at a 46 per cent premium over its last closing share price, signalling a bold move despite recent controversies surrounding Kenvue.

Earlier this year, Donald Trump urged pregnant women to “fight like hell” against using paracetamol, claiming without foundation that Tylenol increases the risk of autism in children. His remarks prompted criticism from medical authorities and UK officials, with the Medicines and Healthcare products Regulatory Agency (MHRA) clarifying that there is no evidence linking paracetamol use during pregnancy to autism. UK Health Secretary Wes Streeting also dismissed Trump’s assertions as baseless and potentially harmful.

Kenvue continues to face legal scrutiny, with ongoing lawsuits in Texas over accusations of deceptive marketing related to its pregnancy pain relief medication. The company maintains it strongly disagrees with any allegations linking its product to increased autism risk and warns of the confusion such misinformation can cause expectant mothers.

The pressure from lawsuits and activist investors led Kenvue to review strategic options, culminating in the ousting of its chief executive in July and the move towards a sale. Aside from the Tylenol controversy, Kenvue and its parent Johnson & Johnson have also been drawn into high-court cases in the UK related to claims that its talc-based baby powder caused illnesses, including ovarian cancer, over several decades.

Despite the legal challenges, the landmark acquisition by Kimberly-Clark suggests continued confidence in Kenvue’s position within the global consumer pharmaceuticals market, though the company will have to navigate ongoing regulatory and reputational headwinds.