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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 NINE MONTHS
                                                      ENDED AUGUST 31,            ENDED AUGUST 31,
                                                    ----------------------    -----------------------
                                                  As Restated                As Restated
                                                        1999        1998          1999         1998
                                                    -----------  ---------   ----------   -----------
<S>                                               <C>            <C>         <C>          <C>

NET INCOME:
   Income before extraordinary loss .......          $   5,957   $  4,391    $   16,455    $   15,069
   Extraordinary loss .....................               (533)      (958)       (2,117)       (2,859)
                                                     ---------   --------    ----------    ----------
     Net income ...........................          $   5,424   $  3,433    $   14,338    $   12,210
                                                     =========   ========    ==========    ==========


COMMON SHARES:
   Weighted average number outstanding ....              9,774      9,483         9,742         9,165
   Number issued upon assumed exercise
     of outstanding stock options and stock
     warrants .............................                265        363           295           342
                                                     ---------   --------    ----------    ----------
   Weighted average and dilutive potential
    number outstanding ....................             10,039      9,846        10,037         9,507
                                                     =========   ========    ==========    ==========


NET INCOME (LOSS) PER COMMON SHARE:
    Basic:
      Income before extraordinary loss ....          $     .61   $    .46    $     1.69    $     1.64
      Extraordinary loss ..................               (.05)      (.10)         (.22)         (.31)
                                                     ---------   --------    ----------    ----------
          Total basic .....................          $     .56   $    .36    $     1.47    $     1.33
                                                     =========   ========    ==========    ==========
    Diluted:
      Income before extraordinary loss ....          $     .59   $    .45    $     1.64    $     1.58
      Extraordinary loss ..................               (.05)      (.10)         (.21)         (.30)
                                                     ---------   --------    ----------    ----------
          Total diluted ...................          $     .54   $    .35    $     1.43    $     1.28
                                                     =========   ========    ==========    ==========
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