<PAGE>


                                                                      EXHIBIT 11

                         CHATTEM, INC. AND SUBSIDIARIES

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

<TABLE>
<CAPTION>
                                                            FOR THE THREE MONTHS            FOR THE NINE MONTHS
                                                               ENDED AUGUST 31,                ENDED AUGUST 31,
                                                          -----------------------          ----------------------
                                                            2000          1999               2000         1999
                                                          --------      ---------          --------     ---------
<S>                                                       <C>           <C>                <C>           <C>
NET INCOME:
   Income before extraordinary loss and change
     in accounting principle..........................    $    5,151    $    5,957         $  14,978     $  16,455
   Extraordinary loss.................................            --          (533)             (110)       (2,117)
   Change in accounting principle.....................            --            --              (542)           --
                                                          ----------    ----------         ---------      ---------
     Net income.......................................    $    5,151    $    5,424         $  14,326      $  14,338
                                                          ==========    ==========         =========      =========

COMMON SHARES:
   Weighted average number outstanding................         9,310         9,774             9,508          9,742
   Number issued upon assumed exercise
     of outstanding stock options and stock...........            69           265               103            295
                                                          ----------    ----------         ---------      ---------
   Weighted average and dilutive potential
    number outstanding................................         9,379        10,039             9,611         10,037
                                                          ==========    ==========         =========      =========

NET INCOME ( LOSS) PER COMMON SHARE:
    Basic:
      Income before extraordinary loss and change
        in accounting principle.......................    $      .55     $     .61         $    1.58      $    1.69
      Extraordinary loss..............................            --          (.05)             (.01)          (.22)
      Change in accounting principle..................            --            --              (.06)            --
                                                          ----------    ----------         ---------      ---------
          Total basic.................................    $      .55     $     .56         $    1.51      $    1.47
                                                          ==========    ==========         =========      =========
    Diluted:
      Income before extraordinary loss and change
       in accounting principle........................    $      .55     $     .59         $    1.56      $    1.64
      Extraordinary loss..............................            --          (.05)             (.01)          (.21)
      Change in accounting principle..................            --            --              (.06)            --
                                                          ----------    ----------         ---------      ---------
          Total diluted...............................    $      .55     $     .54         $    1.49      $    1.43
                                                          ==========    ==========         =========      =========
</TABLE>

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