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 ENDED            FOR THE NINE MONTHS ENDED
                                                                      AUGUST 31,                           AUGUST 31,
                                                             --------------------------            -------------------------
                                                                 1995            1994                  1995          1994
                                                             -----------      ---------            -----------     ---------
                                                                                                       
NET INCOME (LOSS):
  Continuing operations...................................    $  1,673         $  1,212             $   1,732       $  1,772
  Discontinued operations.................................       -                  239                10,538            979
  Extraordinary loss......................................       -               (1,556)                 (367)        (1,556)
                                                             -----------      ---------            -----------     ---------
    Net income (loss).....................................    $  1,673         $   (105)            $  11,903       $  1,195
                                                             ===========      =========            ===========     =========
WEIGHTED AVERAGE NUMBER OF COMMON AND
 COMMON EQUIVALENT SHARES OUTSTANDING.....................       7,292            7,292                 7,292          7,292
                                                             ===========      =========            ===========     =========
NET INCOME (LOSS) PER COMMON SHARE:
  Continuing operations...................................    $   0.23         $   0.17             $    0.24       $   0.24
  Discontinued operations.................................       -                 0.03                  1.44           0.14
  Extraordinary loss......................................       -                (0.21)                (0.05)         (0.21)
                                                             -----------      ---------            -----------     ---------

      Net income (loss) per common share..................    $   0.23         $  (0.01)            $    1.63       $   0.17
                                                             ===========      =========            ===========     =========