- Wednesday, October 16, 2024
Shares of Tylenol maker Kenvue Inc. experienced a significant boost, surging over 5% in premarket trading on Tuesday. This surge comes as a result of a federal court judge in New York ruling to block plaintiffs' expert testimony in a product-liability case involving Tylenol and generic acetaminophen manufacturers. Judge Denise Cote, from the U.S. District Court for the Southern District of New York, granted the defendants' motion to exclude plaintiffs' expert opinions on the potential link between in-utero exposure to acetaminophen and the development of autism spectrum disorder and attention deficit hyperactivity disorder (ADHD).
A Clear Victory for Defendants
J.P. Morgan analysts expressed their approval in a research note published on Monday, calling the judge's ruling a "clean sweep for the defendants." The analysts went on to explain how this decision effectively dismantles the plaintiffs' case in the multi-district litigation. They even added Kenvue Inc. shares to their focus list as a value pick, suggesting that this development will likely align the stock's valuation with its industry peers.
Kenvue Inc. is the consumer health business that was spun off from Johnson & Johnson earlier this year. Although the company's shares have experienced a minor 0.2% dip in the past three months, the broader market, as represented by the S&P 500, has seen a significant 6.7% gain during the same period.
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