Top Companies Report

34. Chattem

July 13, 2010

Chattanooga, TN
Sales: $313 million

$313 million for personal care products for fiscal year ended Nov. 30, 2009. Corporate sales: $463 million. Net income: $63.1 million

Key Personnel:
Zan Guerry, chairman and chief executive officer of Chattem; Brent Ragans, vice president, U.S. Consumer Healthcare and U.S. Dermatology, Sanofi-Aventis

Major Products:
Medicated skin care—Gold Bond, Cortizone 10; Skin care—Balmex diaper rash, Mudd; Topical pain care—Icy Hot and Aspercreme; Oral care—Act; Hair care—Selsun Blue, Sun-In, Ultra Swim; Sun care—Bull Frog, UltraSwim

New Products:
Act Total Care, Gold Bond Sanitizing Moisturizer, Gold Bond Ultimate Protecting Lotion, Gold Bond Anti-Itch Lotion, Gold Bond Foot Pain Cream, Gold Bond Ultimate Concentrated Therapy, Cortizone-10 Cooling Gel, Cortizone-10 Easy Relief Applicator, Icy Hot No-Mess Applicator, Selsun Blue Itchy Dry Scalp.

Chattem—maker of Bull Frog sun care and Gold Bond medicated skin care products—was gobbled up by Sanofi-Aventis in a deal announced at the end 2009. Other well-known brands involved in the $1.9 billion acquisition included Icy Hot, Act, Cortizone-10 and Selsun Blue as well as Chattem’s sleep aid, Unisom.

According to its new French owner, Chattem’s role is to serve as a platform for Sanofi-Aventis’ over-the-counter and consumer health products in the U.S. Zan Guerry was kept on to lead the business, reporting to Greg Irace, president and chief executive officer, Sanofi-Aventis U.S.

“The addition of Chattem to our worldwide portfolio of leading consumer healthcare businesses represents an important milestone in Sanofi-Aventis’ strategy to become a global diversified healthcare leader,” Christopher A. Viehbacher, chief executive officer of Sanofi-Aventis, said in a press statement.

For Sanofi-Aventis, there’s gold in one of its newest brands—Gold Bond. According to Chattem, net sales in its medicated skin care category rose 11.3% to $158 million, in fiscal 2009, primarily as a result of several launches through the year—Gold Bond Sanitizing Moisturizer in the fourth quarter of fiscal 2009, the launch of Gold Bond Ultimate Concentrated Therapy in the third quarter of fiscal 2009, the launches of Gold Bond Anti-Itch Lotion, Gold Bond Foot Pain Cream and Gold Bond Ultimate Protecting Lotion during the first quarter of fiscal 2009.Net sales in the topical pain care category, however fell 1.4%.

Net sales in Chattem’s oral care category jumped 11.9% to $95.4 million in fiscal 2009, which the company attributed to the rollout of Act Total Care in the first quarter of fiscal 2009 and the continued performance of Act Restoring and Act Rinse.

Net sales in the medicated dandruff shampoos category rose 2.1%, in fiscal 2009 to$44 million, while its “other OTC and toiletry products” category saw sales fall 11.3% to $16.1 million.