Chattem

Chattem, Inc.
Company type	Subsidiary
Industry	Healthcare, personal care
Founded	1879
Founder	Zeboim Cartter Patten
Headquarters	Chattanooga, Tennessee, United States
Area served	United States, Europe, Canada, Latin America, Caribbean
Products	Over-the-counter healthcare items, personal care products, dietary supplements, topical pain relievers, medicated skincare solutions
Owner	Sanofi
Number of employees	45 (sales team)
Parent	Sanofi

Chattem, Inc. is a Chattanooga, Tennessee-based American company specializing in the production and marketing of over-the-counter healthcare items, personal care products, dietary supplements, topical pain relievers, and medicated skincare solutions. Initially established as the Chattanooga Medicine Company, its brand portfolio comprises twenty-two names including Allegra, Gold Bond, Flexall, IcyHot, Rolaids, Sun-In, Pamprin, Dexatrim, Aspercreme, and Selsun Blue. Roughly two-thirds of its product manufacturing takes place at its Chattanooga plants, with the remaining output outsourced. Chattem functions as a subsidiary under the French multinational pharmaceutical corporation Sanofi.

The company’s brands are distributed nationwide through mass merchandisers, pharmacies, and grocery chains. In 2005, the top ten customers accounted for 70% of sales, featuring major retailers such as Wal-Mart, Walgreens, and Kroger; Wal-Mart alone represented 36% of total sales. Chattem supports its market efforts with a dedicated sales team of 45 employees and invests in broadcast advertising. Its market reach extends across the United States, Europe, Canada, Latin America, and the Caribbean.

History

Founded in 1879 by Zeboim Cartter Patten as the Chattanooga Medicine Company, incorporated in 1909 and headquartered in Chattanooga from the start.
During World War II, it produced 34 million K-Rations for the US Army and received five Army-Navy "E" Awards recognizing its wartime contributions.
The company rebranded as Chattem and went public in 1969.
From 1989 to 1992, Chattem experienced substantial growth by acquiring under-promoted consumer brands and improving their marketing strategies. However, in 1993 sales declined by 14% after losing Warner-Lambert’s Rolaids contract. To finance a special dividend in 1994, it issued $75 million in high-yield bonds.
In January 2013, Chattem regained full ownership of Rolaids following quality control problems under Johnson & Johnson that resulted in product recalls and discontinuations. The brand was reintroduced with new packaging in September 2013; however, manufacturing did not return to Chattanooga.
In March 2014, Chattem divested Dexatrim to NVE Pharmaceuticals.

Recent events

In October 2006, Chattem revealed plans to acquire five established brands for $410 million after the merger of Johnson & Johnson and Pfizer’s consumer healthcare divisions. The brands included:

ACT Anti-Cavity Mouthwash
Unisom
Cortizone 10
Kaopectate
Balmex-Diaper Rash Ointment

Subject to US regulatory approval of the Johnson & Johnson-Pfizer merger, Chattem anticipated gaining these mature brands by January 2007, which would add about $150 million annually in revenue.

On December 21, 2009, Paris-based Sanofi, ranked as the fourth-largest drug manufacturer globally, announced a $1.9 billion cash deal to acquire Chattem; the transaction was finalized in early 2010.

Current brands

Chattem offers over-the-counter healthcare products divided into three main segments: pain relief, skin & hair care, and health & wellness.

Pain relief

Arthritis Hot
Aspercreme
Capzasin
Cortizone 10
Flexall
Icy Hot
Sportscreme

Skin and Hair Care

Health and Wellness