CVS Health has decided to remove certain cold and cough medicines from its store shelves following advice from advisers to the Food and Drug Administration (FDA) stating that the active ingredient in these products is ineffective when taken orally.
The FDA's advisers recently shared their opinion that although phenylephrine, the active ingredient in these medicines, is safe, it does not work when consumed orally. At the time, the FDA had not made a final determination regarding the effectiveness of phenylephrine and had stated that it would seek public input before doing so.
A spokesperson for CVS stated, "We are removing a small number of oral decongestant products that contain phenylephrine as the only active ingredient…". According to The Wall Street Journal, the FDA has not mandated any action for retailers or manufacturers to stop selling these products. However, CVS has chosen to voluntarily remove phenylephrine products from its inventory.
Both Kenvue and Haleon declined to comment or did not respond to requests for comment regarding this matter.
Following this news, Kenvue's stock experienced a slight dip initially but recovered later in the day to trade flat. American depositary receipts of Haleon were slightly up.
According to analysts, the financial impact on both Kenvue and Haleon is expected to be minimal as these drugs account for less than 2% of each company's sales in the United States.
In conclusion, while it is highly likely that the FDA will ultimately withdraw phenylephrine from the market, the impact on Kenvue and Haleon is predicted to be insignificant.