<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 FOR THE NINE MONTHS
ENDED AUGUST 31, ENDED AUGUST 31,
----------------------- ----------------------
2000 1999 2000 1999
-------- --------- -------- ---------
<S> <C> <C> <C> <C>
NET INCOME:
Income before extraordinary loss and change
in accounting principle.......................... $ 5,151 $ 5,957 $ 14,978 $ 16,455
Extraordinary loss................................. -- (533) (110) (2,117)
Change in accounting principle..................... -- -- (542) --
---------- ---------- --------- ---------
Net income....................................... $ 5,151 $ 5,424 $ 14,326 $ 14,338
========== ========== ========= =========
COMMON SHARES:
Weighted average number outstanding................ 9,310 9,774 9,508 9,742
Number issued upon assumed exercise
of outstanding stock options and stock........... 69 265 103 295
---------- ---------- --------- ---------
Weighted average and dilutive potential
number outstanding................................ 9,379 10,039 9,611 10,037
========== ========== ========= =========
NET INCOME ( LOSS) PER COMMON SHARE:
Basic:
Income before extraordinary loss and change
in accounting principle....................... $ .55 $ .61 $ 1.58 $ 1.69
Extraordinary loss.............................. -- (.05) (.01) (.22)
Change in accounting principle.................. -- -- (.06) --
---------- ---------- --------- ---------
Total basic................................. $ .55 $ .56 $ 1.51 $ 1.47
========== ========== ========= =========
Diluted:
Income before extraordinary loss and change
in accounting principle........................ $ .55 $ .59 $ 1.56 $ 1.64
Extraordinary loss.............................. -- (.05) (.01) (.21)
Change in accounting principle.................. -- -- (.06) --
---------- ---------- --------- ---------
Total diluted............................... $ .55 $ .54 $ 1.49 $ 1.43
========== ========== ========= =========
</TABLE>
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