<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Chattem, Inc.'s unaudited financial statements and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> NOV-30-1997 <PERIOD-START> DEC-01-1996 <PERIOD-END> FEB-28-1997 <CASH> 9,925 <SECURITIES> 0 <RECEIVABLES> 23,279 <ALLOWANCES> 400 <INVENTORY> 11,724 <CURRENT-ASSETS> 48,162 <PP&E> 26,443 <DEPRECIATION> 16,800 <TOTAL-ASSETS> 149,200 <CURRENT-LIABILITIES> 23,866 <BONDS> 126,553 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,857 <OTHER-SE> (8,933) <TOTAL-LIABILITY-AND-EQUITY> 149,200 <SALES> 27,946 <TOTAL-REVENUES> 27,946 <CGS> 8,394 <TOTAL-COSTS> 24,318 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 3,798 <INCOME-PRETAX> 149 <INCOME-TAX> 13 <INCOME-CONTINUING> 136 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 136 <EPS-PRIMARY> .02 <EPS-DILUTED> .02