<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> 9-MOS <FISCAL-YEAR-END> NOV-30-1997 <PERIOD-START> DEC-01-1996 <PERIOD-END> AUG-31-1997 <CASH> 2,489 <SECURITIES> 0 <RECEIVABLES> 26,799 <ALLOWANCES> 400 <INVENTORY> 15,364 <CURRENT-ASSETS> 47,815 <PP&E> 27,798 <DEPRECIATION> 17,566 <TOTAL-ASSETS> 174,372 <CURRENT-LIABILITIES> 27,009 <BONDS> 139,395 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 2,104 <OTHER-SE> 116 <TOTAL-LIABILITY-AND-EQUITY> 174,372 <SALES> 106,033 <TOTAL-REVENUES> 106,033 <CGS> 29,382 <TOTAL-COSTS> 86,176 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 11,838 <INCOME-PRETAX> 9,369 <INCOME-TAX> 3,329 <INCOME-CONTINUING> 6,040 <DISCONTINUED> 0 <EXTRAORDINARY> (1,370) <CHANGES> 0 <NET-INCOME> 4,670 <EPS-PRIMARY> 0.52 <EPS-DILUTED> 0.52