EXHIBIT 11

                    CHATTEM, INC. AND SUBSIDIARIES
          STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
          FOR THE YEARS ENDED NOVEMBER 30, 1995, 1994 AND 1993
                (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)





                                                  1995       1994       1993
                                                ------------------------------
                                                            
NET INCOME (LOSS):
Continuing operations ........................  $ 2,325    $ 2,110   $(1,100)
Discontinued operations ......................   10,008      1,500     2,379
Extraordinary loss on early extinguishment
  of debt, net ...............................     (367)    (1,556)     (480)
Cumulative effect of accounting change,
  net ........................................       --         --       569
                                                --------   --------  --------
     Net income ..............................  $11,966    $ 2,054   $ 1,368
                                                ========   ========  ========

WEIGHTED AVERAGE NUMBER OF COMMON AND
  COMMON EQUIVALENT SHARES OUTSTANDING:
  Weighted number of common shares
    outstanding ..............................    7,292      7,292     6,303
  Shares issued upon assumed exercise
    of outstanding stock options .............       --         --        38
                                                --------   --------  --------
  Weighted average number of common and
    common equivalent shares outstanding .....    7,292      7,292     6,341
                                                ========   ========  ========

NET INCOME (LOSS) PER COMMON SHARE:
  Continuing operations ......................  $   .32    $   .29   $  (.17)
  Discontinued operations ....................     1.37        .21       .38
  Extraordinary loss on early extinguishment
    of debt, net .............................     (.05)      (.21)     (.08)
  Cumulative effect of accounting change,
    net ......................................       --         --       .09
                                                --------   --------  --------
        Net income per common share...........  $  1.64    $   .29   $   .22
                                                ========   ========  ========