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                                                                      EXHIBIT 11

                         CHATTEM, INC. AND SUBSIDIARIES

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

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                                                    FOR THE THREE MONTHS          FOR THE SIX MONTHS
                                                         ENDED MAY 31,                ENDED MAY 31,
                                                 -------------------------    --------------------------
                                                  As Restated                 As Restated
                                                         1999         1998          1999            1998
                                                 ------------    ---------    ----------     -----------
<S>                                               <C>           <C>           <C>            <C>
NET INCOME:
   Income before extraordinary loss......          $    6,921   $   10,069     $  10,498     $    10,678
   Extraordinary loss....................              (1,157)      (1,901)       (1,584)         (1,901)
                                                  -----------  -----------   -----------    ------------
     Net income..........................          $    5,764   $    8,168     $   8,914     $     8,777
                                                  ===========  ===========    ==========    ============

COMMON SHARES:
   Weighted average number outstanding....              9,741        9,370         9,726           9,149
   Number issued upon assumed exercise
     of outstanding stock options and stock
     warrants.............................                371          459           379             399
                                                  ------------  ------------ ------------    -----------
   Weighted average and dilutive potential
    number outstanding....................             10,112        9,829        10,105           9,548
                                                  ============   =========== ============    ===========

NET INCOME ( LOSS) PER COMMON SHARE:
    Basic:
      Income before extraordinary loss....         $      .71   $     1.07     $    1.08     $     1.17
      Extraordinary loss..................               (.12)        (.20)         (.16)          (.21)
                                                 ------------- --------------  ------------ ------------
          Total basic.....................         $      .59   $      .87     $     .92     $      .96
                                                 ============= ==============  ============ ============
    Diluted:
      Income before extraordinary loss....         $      .69   $     1.02     $    1.04     $     1.12
      Extraordinary loss..................               (.12)        (.19)         (.16)          (.20)
                                                 ------------- --------------  ------------ ------------
          Total diluted...................         $      .57   $      .83     $     .88     $      .92
                                                 ============= ==============  ============ ============
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