Chattem

Chattem is an American, Chattanooga, Tennessee-based, 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, Rolaids, 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 and broadcast media advertising. Chattem has market penetration in the United States, Europe, Canada, Latin America, and the Caribbean.

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:

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.

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.