EXHIBIT 11

                         CHATTEM, INC. AND SUBSIDIARIES

              STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
             (UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



                                                   FOR THE THREE MONTHS       FOR THE NINE MONTHS
                                                      ENDED AUGUST 31,            ENDED AUGUST 31,
                                                    ----------------------    -----------------------
                                                  As Restated                As Restated
                                                        1999        1998          1999         1998
                                                    -----------  ---------   ----------   -----------
                                                                              

NET INCOME:
   Income before extraordinary loss .......          $   5,957   $  4,391    $   16,455    $   15,069
   Extraordinary loss .....................               (533)      (958)       (2,117)       (2,859)
                                                     ---------   --------    ----------    ----------
     Net income ...........................          $   5,424   $  3,433    $   14,338    $   12,210
                                                     =========   ========    ==========    ==========


COMMON SHARES:
   Weighted average number outstanding ....              9,774      9,483         9,742         9,165
   Number issued upon assumed exercise
     of outstanding stock options and stock
     warrants .............................                265        363           295           342
                                                     ---------   --------    ----------    ----------
   Weighted average and dilutive potential
    number outstanding ....................             10,039      9,846        10,037         9,507
                                                     =========   ========    ==========    ==========


NET INCOME (LOSS) PER COMMON SHARE:
    Basic:
      Income before extraordinary loss ....          $     .61   $    .46    $     1.69    $     1.64
      Extraordinary loss ..................               (.05)      (.10)         (.22)         (.31)
                                                     ---------   --------    ----------    ----------
          Total basic .....................          $     .56   $    .36    $     1.47    $     1.33
                                                     =========   ========    ==========    ==========
    Diluted:
      Income before extraordinary loss ....          $     .59   $    .45    $     1.64    $     1.58
      Extraordinary loss ..................               (.05)      (.10)         (.21)         (.30)
                                                     ---------   --------    ----------    ----------
          Total diluted ...................          $     .54   $    .35    $     1.43    $     1.28
                                                     =========   ========    ==========    ==========