Chattem

Chattem Inc.

Type	Subsidiary
Industry	healthcare Over-the-counter-drug manufacturing
Founded	Tennessee (January 30, 1879, as the Chattanooga Medicine Company)
Headquarters	Chattanooga, Tennessee
Key people	Zan Guerry, Chairman & CEO
Products	Allegra, Gold Bond, Flexall, IcyHot, Bullfrog Sunblock, Sun-In, Pamprin, Dexatrim, Aspercreme, and Selsun Blue
Revenue	$463,3 Million (USD) 2009
Operating income	unknown
Net income	unknown
Employees	536[1]
Website	Chattem.com

Chattem is a Chattanooga, Tennessee, producer and marketer of over-the-counter healthcare products, toiletries, dietary supplements, topical analgesics, and medicated skin care products. Originally named the Chattanooga Medicine Company, the company’s brand portfolio holds twenty-two brands including Allegra, Gold Bond, Flexall, IcyHot, Bullfrog Sunblock, Sun-In, Pamprin, Dexatrim, Aspercreme, and Selsun Blue. Two-thirds of Chattem’s products are produced by the company at its Chattanooga production facilities with the remaining produced by third-party producers. The company is a subsidiary of the French multinational pharmaceutical company Sanofi.

The company’s brands are sold nationally through mass merchandiser, drug and food retailers. In 2005, 70% of all sales by the firm were made through its top ten customers, which include Wal-Mart, Walgreens, and Kroger. Sales to Wal-Mart constituted 36% of Chattem’s total sales in 2005. Chattem supports these sales with a forty-five-person sales force broadcast media advertising. Chattem has market penetration in the United States, Europe, Canada, Latin America, and the Caribbean.

History

• Chattem was founded by Zeboim Cartter Patten as the Chattanooga Medicine Company in 1879. The company incorporated in 1909 and has remained in Chattanooga, Tennessee, to this day.
• During world war 2, the Chattanooga Medicine Company turned into a major supplier of K-Rations to the US Army, producing 34 millions rations from 1942 to 1945, earning 5 "E" Awards for support of war efforts^[2].
• The firm adopted Chattem as its name and went public in 1969.
• Chattem’s top and bottom lines grew significantly from 1989 through 1992. The source of this growth was the company’s strategy of purchasing under-marketed consumer brands and aggressively marketing those already in its portfolio. In 1993, Chattem experienced a 14% decline in sales as a result of the loss of Warner-Lambert’s Rolaids business. To fund a one-time special dividend in 1994, $75 million in high-yield bonds were issued.

Recent events

In October 2006, Chattem announced that it would acquire five brands for $410 million as a result of the merger between Johnson & Johnson and the consumer healthcare business of Pfizer. These brands are:

• ACT Anti-Cavity Mouthwash
• Unisom
• Cortizone
• Kaopectate
• Balmex-Diaper Rash Ointment

Pending the US government’s approval of the merger of Johnson & Johnson and Pfizer, Chattem will acquire five brands divested from the firms. Chattem has announced that it expects to take possession of the brands around January 2007. These are very mature brands and will provide $150 million in additional revenue to Chattem per year.^{[citation needed]}

On December 21, 2009, Paris-based (France) Sanofi, the world's fourth largest drugmaker, said it was acquiring Chattem in a $1.9 billion cash deal. Sanofi said that the acquisition would be completed by the first quarter of 2010. ^[3]

References

1. ^ http://en.sanofi.com/Images/16370_Chattem_Presentation_2010-03_EN.pdf
2. ^ http://chattem.com/about08.asp
3. ^ "Sanofi to Acquire Chattem", The Economic Times (December 22, 2009)