<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 ENDED                FOR THE NINE MONTHS ENDED
                                                       AUGUST 31,                              AUGUST 31,
                                                 1998            1997                     1998            1997
                                             ------------   -------------             ------------    ------------

<S>                                          <C>            <C>                       <C>             <C>
NET INCOME:
  Income before extraordinary loss .......    $ 4,391       $  2,847                  $ 15,069         $  6,040
  Extraordinary loss .....................       (958)        (1,370)                   (2,859)          (1,370) 
                                             ------------   -------------             ------------    ------------
    Net income ...........................    $  3,433      $  1,477                  $ 12,210         $  4,670 
                                             ------------   -------------             ------------    ------------
                                             ------------   -------------             ------------    ------------

COMMON SHARES:
    Weighted average number outstanding          9,483         8,882                     9,165            8,700
    Number issued upon assumed exercise
       of outstanding stock options and
       stock warrants ...................          363           450                       342              320
                                             ------------   -------------             ------------    ------------
    Weighted average number of common
       and common equivalent shares           
       outstanding ......................        9,846         9,332                     9,507            9,020
                                             ------------   -------------             ------------    ------------
                                             ------------   -------------             ------------    ------------

NET INCOME PER COMMON SHARE:
  Basic:
    Income before extraordinary loss           $  0.46        $ 0.32                    $ 1.64          $  0.70
    Extraordinary loss ..................         (.10)         (.15)                     (.31)            (.16)
                                             ------------   -------------             ------------    ------------
      Total basic                              $  0.36        $ 0.17                    $ 1.33         $   0.54
                                             ------------   -------------             ------------    ------------
                                             ------------   -------------             ------------    ------------
  Diluted:
    Income before extraordinary loss ....      $  0.45        $ 0.31                    $ 1.58         $   0.67
    Extraordinary loss ..................         (.10)         (.15)                     (.30)            (.15)
                                             ------------   -------------             ------------    ------------
      Total diluted .....................      $  0.35        $ 0.16                    $ 1.28         $   0.52
                                             ------------   -------------             ------------    ------------
                                             ------------   -------------             ------------    ------------
</TABLE>