Investing.com -- Shares in Kenvue (NYSE:KVUE) rose by roughly 5% in early trading in New York on Tuesday following a favorable court ruling in a class action lawsuit related to its popular painkiller Tylenol.
U.S. district judge Denise Cote granted a motion from the defense to exclude the plaintiffs' expert opinions on whether prenatal exposure to acetaminophen -- the active ingredient in Tylenol -- causes Autism Spectrum Disorder (ASD) or Attention Deficit Hyperactivity Disorder (ADHD) in offspring.
Analysts from JPMorgan noted that the ruling “effectively collapses the plaintiffs’ case in the multi-district litigation.” They subsequently added Kenvue -- the consumer health spin-off of Johnson & Johnson -- to their focus list as a "value idea," arguing that the decision would likely help the stock's valuation align with its peers.
Senad Karaahmetovic contributed to this report.