Chattem
Encyclopedia
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.
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.
Chattanooga, Tennessee
Chattanooga is the fourth-largest city in the US state of Tennessee , with a population of 169,887. It is the seat of Hamilton County...
, 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
Allegra
Allegra may refer to:A character* Allegra, the main character on the 1994–1996 Nick Jr. television series Allegra's Window* Allegra Geller, fictional character in the 1999 film eXistenZA person...
, Gold Bond
Gold bond
Gold bond may refer to* Bond, that can be redeemed for gold such as a United States gold certificate* Gold Bond Trading Company, later Carlson Companies, a company that dealt in trading stamps* Gold Bond medicated powder, an over-the-counter skin treatment...
, Flexall, IcyHot
IcyHot
IcyHot is a topical rubefacient heat rub meant for relieving pains such as arthritis, backache, muscle strains, sprains, bruises, and cramps. IcyHot, produced and marketed by Chattem, now a subsidiary of Sanofi-Aventis, is known for its dual action pain relief, claiming it is "Icy to dull the...
, Bullfrog Sunblock, Sun-In, Pamprin, Dexatrim
Dexatrim
Dexatrim is an over-the-counter dietary supplement meant to assist with weight loss. Dexatrim claims it “gives you the power to lose weight, curb binges, and keep you in control of your diet.” Current Dexatrim products available are in capsule form and include Dexatrim Max Complex 7, Dexatrim Max...
, Aspercreme, and Selsun Blue
Selsun Blue
Selsun Blue is an over-the-counter brand of dandruff shampoo now owned by Sanofi-Aventis. First made by Abbott Laboratories, the brand was bought in Chattem in 2002. Chattem was acquired by Sanofi-Aventis in 2010. Selsun Blue has been marketed as a more effective alternative to brand leader Head &...
. 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
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
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
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, Walgreens
Walgreens
Walgreen Co. , doing business as Walgreens , is the largest drugstore chain in the United States of America. As of August 31st, the company operates 8,210 locations across all 50 states, the District of Columbia and Puerto Rico. Founded in Chicago, Illinois in 1901, and has since expanded...
, 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 PattenZeboim Cartter PattenZeboim Cartter Patten was an American industrialist, capitalist, and American Civil War captain, born in Wilna, New York, who lived in Chattanooga, Tennessee and founded the Volunteer Life Insurance Company , The Stone Fort Land Company , The T.H...
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.
- 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 RolaidsRolaidsRolaids is a brand of antacid produced by McNeil Consumer Healthcare, a subsidiary of Johnson & Johnson. The brand was acquired from Pfizer Consumer Healthcare as part of a merger in 2006. It was invented by American chemist Irvine W. Grote in the late 1920s...
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 & JohnsonJohnson & Johnson
Johnson & Johnson is an American multinational pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500....
and the consumer healthcare business of Pfizer
Pfizer
Pfizer, Inc. is an American multinational pharmaceutical corporation. The company is based in New York City, New York with its research headquarters in Groton, Connecticut, United States...
. These brands are:
- ACT Anti-Cavity Mouthwash
- UnisomRandy OrtonRandal Keith "Randy" Orton is an American professional wrestler and actor. He is signed to WWE wrestling on its SmackDown brand...
- CortizoneCortizoneCortizone 10 is a brand of anti-itch medications, manufactured by Chattem, that contain hydrocortisone.See also:*Cortisone , a hormone*Cortisol , a hormone*Hydrocortisone, synthetically produced cortisol...
- KaopectateKaopectateKaopectate, known medically as bismuth subsalicylate, is an orally taken medication from Chattem, Inc. for the treatment of mild diarrhea. It is also sometimes used to treat indigestion, nausea and stomach ulcers...
- 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.
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.