<PAGE>

                                                                      EXHIBIT 11



                         CHATTEM, INC. AND SUBSIDIARIES
              STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
              FOR THE YEARS ENDED NOVEMBER 30, 2000, 1999 AND 1998
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>

                                                        2000              1999              1998
                                                    -----------       -----------       -----------
<S>                                                 <C>               <C>               <C>
NET INCOME:
  Income (loss) before extraordinary loss and
    change in accounting principle...........       $     (197)       $   22,541        $   18,128
  Extraordinary loss.........................             (920)           (2,385)           (2,859)
  Change in accounting principle.............             (542)               --                --
                                                    -----------       -----------       -----------
      Net income (loss)......................       $   (1,659)       $   20,156        $   15,269
                                                    ===========       ===========       ===========

NUMBER OF COMMON SHARES:
  Weighted average outstanding..............             9,411             9,747             9,374
  Issued upon assumed exercise of
    outstanding stock options and stock
    warrants................................                --               277               361
                                                    -----------       -----------       -----------
  Weighted average and dilutive potential
    outstanding.............................             9,411            10,024             9,735
                                                    ===========       ===========       ===========

NET INCOME (LOSS) PER COMMON
  SHARE:
  Basic:
    Income (loss) before extraordinary loss
      and change in accounting principle...         $     (.02)    $        2.31     $        1.93
    Extraordinary loss.....................               (.10)             (.24)             (.30)
    Change in accounting principle.........               (.06)               --                --
                                                    -----------       -----------       -----------
      Total basic..........................         $     (.18)    $        2.07     $        1.63
                                                    ===========       ===========       ===========
  Diluted:
    Income (loss) before extraordinary loss
      and change in accounting principle...         $     (.02)    $        2.25     $        1.86
    Extraordinary loss.....................               (.10)             (.24)             (.29)
    Change in accounting principle.........               (.06)               --                --
                                                    -----------       -----------       -----------
      Total diluted........................         $     (.18)    $        2.01     $        1.57
                                                    ===========       ===========       ===========

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