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Chattem, Inc. 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. The company produces two-thirds of its products 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.

Key Information

The company’s brands are sold nationally through mass merchandiser, drug and food retailers. In 2005, 70% of the firm's sales 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.

History

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  • Chattem was founded by Zeboim Cartter Patten as the Chattanooga Medicine Company in 1879. The company incorporated in 1909 and has remained in Chattanooga, Tennessee, to this day.
  • During World War II, the Chattanooga Medicine Company turned into a major supplier of K-Rations to the US Army, producing 34 million rations from 1942 to 1945, earning 5 "E" Awards for support of war efforts.[2]
  • 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 in its portfolio. In 1993, Chattem experienced a 14% decline in sales from the loss of Warner-Lambert’s Rolaids business. To fund a one-time special dividend in 1994, $75 million in high-yield bonds were issued.
  • In January 2013, Chattem acquired the full rights to Rolaids, which had seen its brand wounded under the ownership of Johnson & Johnson's McNeil Consumer Healthcare with a series of product recalls and quality control issues throughout 2010 that ended with most of the Rolaids line discontinued.[3] In September, 2013 Chattem returned Rolaids to the market with new trade dress, though production of Rolaids is not expected to return to Chattanooga.[4]
  • In March 2014, Chattem sold Dexatrim to NVE Pharmaceuticals.[5]

Recent events

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In October 2006, Chattem announced 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 Consumer Healthcare, Chattem will acquire five brands divested from the firms. Chattem has announced it expects to take possession of the brands around January 2007. These mature brands will provide $150 million in additional revenue to Chattem per year.[citation needed]

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 the acquisition would be completed by the first quarter of 2010.[6]

Current brands

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Chattem manufactures many over-the-counter healthcare products. They are marketed in three categories: pain relief, skin & hair care, and health & wellness.

Pain relief

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Skin & hair care

[edit]

Health & wellness

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References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Chattem, Inc. is an American consumer healthcare company headquartered in , that develops, manufactures, and markets over-the-counter (OTC) medications, personal care products, and dietary supplements. As part of Opella—a consumer healthcare business in which the multinational pharmaceutical corporation holds a 50% stake following a 2025 transaction with —Chattem manages a portfolio of established brands focused on solutions for conditions such as skin ailments, pain relief, oral health, and allergies. Founded on February 21, 1879, as the Chattanooga Medicine Company by Zeboim Cartter Patten, the firm initially produced herbal remedies, including the popular Black-Draught laxative, which became a cornerstone of its early success in the American South. Over the decades, Chattem expanded through acquisitions and product diversification, evolving from a regional producer into a national player in the OTC sector; by the mid-20th century, it had introduced lines in topical analgesics and medicated powders. In 1966, the company rebranded from the Chattanooga Medicine Company to Chattem Drug & Chemical Company, and in 1978 to Chattem, Inc., reflecting its broadened scope into branded consumer goods. A pivotal milestone occurred in 2010 when -aventis acquired Chattem for approximately $1.9 billion in cash, positioning it as a key component of Sanofi's U.S. consumer healthcare platform and enabling the transition of prescription drugs like Allegra to OTC status under Chattem's distribution network. Post-acquisition, Chattem's annual retail sales exceeded $1 billion by 2012, driven by flagship brands such as Gold Bond medicated lotions, Icy Hot pain relief patches, ACT anticavity mouthwashes, Cortizone-10 anti-itch creams, dandruff shampoos, and Unisom sleep aids. In 2025, Sanofi's consumer healthcare business, including Chattem, was restructured into the independent company Opella, valued at an enterprise value of approximately €16 billion (about $17 billion USD) as of 2024, with Sanofi retaining a 50% stake. Opella, with Chattanooga as its only U.S. site, continues to innovate in , emphasizing accessible treatments for everyday health needs while maintaining its roots and commitment to quality .

Overview

Company profile

Chattem, Inc. is an American company headquartered in , specializing in the production and marketing of over-the-counter (OTC) healthcare products, toiletries, and dietary supplements. Founded in 1879, it has established itself as a key player in the consumer health sector, focusing on branded items sold through mass merchandisers, drug stores, and food retailers. Since its acquisition by -aventis in March 2010 for approximately $1.9 billion, Chattem has operated as a wholly-owned within Sanofi's U.S. consumer healthcare division, enhancing the parent's presence in the North American OTC market. This integration has allowed Chattem to leverage Sanofi's global resources while maintaining its focus on innovative consumer products. In 2017, the company rebranded as Consumer Healthcare to better align with its parent company. Chattem's products reach consumers worldwide via major retail channels, such as , which represented about 33% of the company's total domestic gross sales in fiscal 2007. As of 2013, the company reported annual retail sales surpassing $1 billion for the first time in its history. In 2024, Sanofi's Chattanooga operations received B Corp certification, recognizing commitments to social and environmental performance.

Ownership and corporate structure

Chattem was founded on February 21, 1879, as the Chattanooga Medicine Company by Zeboim Cartter Patten, a Chattanooga businessman who established the firm with a group of associates to produce and market patent medicines, beginning with the laxative Black-Draught. The company was formally incorporated in in 1909, solidifying its structure as a corporate entity focused on over-the-counter (OTC) remedies. In 1966, the company rebranded from Chattanooga Medicine Company to Chattem Drug and Chemical Company, reflecting its diversification into chemicals and pharmaceuticals, and went public the following year in 1969 through an on the , enabling broader investment and growth in the consumer healthcare sector. This public status persisted until March 2010, when French multinational pharmaceutical company (now ) completed its acquisition of Chattem for approximately $1.9 billion in cash, purchasing all outstanding shares at $93.50 each and delisting the stock from the Global Select Market. The deal positioned Chattem as 's dedicated U.S. consumer healthcare platform, leveraging its established OTC portfolio to enhance 's presence in the American market, including plans to switch select prescription drugs to OTC status under Chattem's management. Following the acquisition, Chattem operates as a wholly owned of . In 2017, it rebranded to Sanofi Consumer Healthcare, retaining a significant degree of operational autonomy in the OTC sector, particularly in sales, marketing, and for products like and Icy Hot. This structure allows the Chattanooga-based operations to function semi-independently within 's global framework, focusing on U.S.-specific initiatives while benefiting from the parent's resources for international expansion and R&D. In terms of leadership, Zan Guerry, who had served as Chattem's CEO since 1990, continued in a key role post-acquisition, leading 's U.S. consumer healthcare business and chairing Chattem's board as it integrated into the larger entity, ensuring continuity in strategic direction for OTC operations. No major board overhauls were documented immediately after 2010, though gained the right to appoint up to 50% of Chattem's directors upon closing the deal, facilitating aligned without disrupting day-to-day .

History

Founding and early development

The Chattanooga Medicine Company was founded in 1879 by Zeboim Cartter Patten, a Chattanooga businessman, along with a group of associates, with an initial capitalization of $25,000 divided into 25 shares valued at $1,000 each. Patten, leveraging profits from his earlier ventures in hardware and real estate, established the firm to manufacture and distribute patent medicines and tonics amid the burgeoning demand for such remedies in the post-Civil War American South. The company's early leadership included Fred F. Wiehl as the first president, followed by transitions to Adolph S. Ochs and Colonel A.M. Johnson, with Patten assuming the presidency in 1891. From its inception, the company focused on popular tonics, launching its flagship products in 1879: Wine of Cardui, a women's uterine and tonic, and Black-Draught, a senna-based for digestive relief. Rights to the Wine of Cardui formula were acquired in from Dr. McElree, while the Black-Draught recipe was purchased the same year from the grandson of Dr. Q.A. Simmons. These products targeted common ailments in rural and regional U.S. markets, particularly the Southeast, where access to formal medical care was limited. Early marketing emphasized aggressive outreach, employing —known as "drummers"—to penetrate remote areas, alongside outdoor signage on barns and fences to build brand visibility. Patten pioneered innovative promotions, including the distribution of the Cardui Calendar and the Ladies Birthday Almanac starting in 1891, which by 1902 reached an estimated 15 million almanacs and 12 million pamphlets mailed nationwide. In response to evolving industry standards, the Chattanooga Medicine Company was formally incorporated in Tennessee in 1909, marking a transition from its partnership origins. This shift coincided with the influences of the federal of 1906, which imposed stricter labeling and purity requirements on patent medicines, compelling the company to adopt more regulated production practices to ensure compliance and sustain market trust. Operations commenced in a modest two-story building on Market Street in Chattanooga, serving as the initial manufacturing and distribution hub. By , to support expanding production of its core tonics, the company relocated to a larger facility on a commercial lot in the St. Elmo neighborhood, facilitating increased output and the hiring of additional personnel for bottling, packaging, and sales efforts. This early employee growth, though not precisely quantified in historical records, underpinned the firm's steady regional expansion during the late 19th and early 20th centuries.

Mid-20th century growth

During , from 1942 to 1945, the Chattanooga Medicine Company, predecessor to Chattem, Inc., played a significant role in supporting the U.S. military by producing over 34 million K-Rations, which provided essential meals for soldiers in the field. The company also manufactured aromatic spirits of ammonia, a key first-aid product used to revive personnel during combat. For its exceptional production efficiency and contributions to the war effort, the company received the Army-Navy "E" Award for excellence five times, an honor named after General and reserved for top-performing contractors. Following the war's end in , Chattem shifted its focus from contracts to consumer markets, restructuring into two primary divisions: consumer products and specialty chemicals to stabilize operations amid reduced government demand. This transition involved diversifying into over-the-counter (OTC) items, including continued production of antiseptics like aromatic spirits of for first-aid kits and the development of buffering agents for aspirin in collaboration with university scientists in the late , which were licensed to Bristol-Myers for marketing as Bufferin; the company also developed compounds in the that were used by other manufacturers in products like . To accommodate this growth, Chattem invested in facility expansions in Chattanooga, modernizing its plants with automated machinery under the leadership of Lupton Patten, who oversaw operations from the 1920s through the 1950s. These upgrades, including enhanced research programs and production lines, increased capacity for OTC manufacturing and helped the company adapt to civilian markets. The brought economic challenges for Chattem, particularly the abrupt end of contracts that had driven wartime prosperity, requiring a rapid pivot to volatile consumer sales amid and . The death of key leader Lupton Patten in 1958 exacerbated leadership transitions, but the company recovered by introducing innovative OTC products like Blis-To-Sol vaginal deodorant and strengthening its consumer focus, which laid the groundwork for sustained growth.

Late 20th and early 21st century expansions

In 1969, Chattem went public through an initial stock offering, marking the first time its shares were available to outside investors following the company's renaming to Chattem Drug and Chemical Company. This move provided capital for expansion amid growing demand for over-the-counter (OTC) products, with the company's revenues surpassing $100 million by 1991 and exceeding $200 million by 1998, reflecting steady stock appreciation driven by acquisition-fueled growth. A secondary offering of 1.3 million shares in 1992 further supported this trajectory, culminating in a over $1 billion by 2007. From 1989 to 1992, Chattem pursued an aggressive acquisition strategy targeting under-marketed OTC brands to bolster its portfolio, capitalizing on its marketing expertise to revitalize sales. In 1989, the company acquired Flex-all 454, a topical analgesic with initial annual sales under $1 million, and launched a $5 million advertising campaign featuring athlete Joe Namath, which propelled sales beyond $10 million within a year. That same year, Chattem purchased Norwich Aspirin, enhancing its pain relief offerings and contributing to a 27.3% return on equity in 1990. The strategy peaked in 1991 with the acquisition of Icy Hot from Procter & Gamble, which elevated Chattem's share of the topical analgesic market to 16%. A pivotal pre-2010 transaction occurred in , when Chattem agreed to acquire U.S. rights to five OTC brands—ACT anticavity mouthwash, Unisom sleep aid, Cortizone-10 anti-itch cream, medicated powder, and anti-diarrheal—from and Pfizer's consumer healthcare business for $410 million, as part of divestitures required for J&J's acquisition of Pfizer's unit. The deal closed on January 2, 2007, instantly adding approximately $115 million to annual revenues and solidifying Chattem's position in oral care, sleep aids, and skin treatments. This acquisition, the largest in company history at the time, aligned with Chattem's focus on high-quality, established brands, driving up 25% to $45 million in fiscal 2006. During the and , Chattem expanded its dietary supplements and toiletries lines through targeted acquisitions and , shifting focus to consumer health after divesting its specialty chemicals division for $25 million in 1995. In 1997, the purchase of Sunsource International introduced Garlique, a leading garlic-based herbal supplement, tapping into the burgeoning demand for natural wellness products. Toiletries growth accelerated with the 2002 acquisition of dandruff shampoo from for $75 million, generating over $40 million in global sales annually and enabling international distribution via a new European in 2004. These efforts contributed to revenues reaching $300 million by 2006, with consumer products comprising 90% of income.

Acquisition by Sanofi and integration

In December 2009, -aventis announced its agreement to acquire Chattem, Inc., for approximately $1.9 billion in cash, through a of $93.50 per share, aiming to establish a robust U.S. platform in the over-the-counter (OTC) consumer healthcare market. The transaction positioned Chattem as the core of 's U.S. OTC business, providing access to established brands in pain relief, , and wellness while enabling the integration of 's own products like Allegra into the OTC segment. The acquisition was completed on March 11, 2010, with Chattem becoming a wholly owned , and its financials consolidated into 's reports effective February 10, 2010. The integration process preserved Chattem's operational independence to a significant degree, with its headquarters remaining in , and the existing manufacturing facilities in the U.S. maintained and expanded. Chattem's brand portfolio was aligned with Sanofi's global consumer health division, forming the foundation of the company's U.S. consumer healthcare operations under the leadership of Chattem's existing senior team, led by Zan Guerry. This structure facilitated synergies in product development and , leveraging Chattem's expertise in OTC formulations alongside Sanofi's international resources. Post-acquisition, strategic shifts emphasized enhanced research and development for OTC innovations, particularly supporting the transition of prescription drugs like Allegra to OTC status, which optimized product lifecycle management. Expanded international distribution became a key focus, with anticipated revenue synergies from introducing Chattem's brands into untapped global markets, contributing to broader geographic reach for Sanofi's health portfolio. Early milestones included stabilizing and growing revenue during the economic recovery following the 2008-2009 ; Sanofi's healthcare division, incorporating Chattem, reported net sales of €2,217 million in 2010, reflecting 45.7% reported growth and 6.9% organic growth. Following the acquisition, Chattem continued to expand its portfolio, acquiring the rights to the Rolaids antacid brand from Johnson & Johnson in January 2013 for an undisclosed amount, relaunching it later that year. In 2017, the company rebranded as Sanofi Consumer Healthcare to better align with its parent organization while maintaining operations in Chattanooga. As of October 2024, Sanofi canceled plans to spin off its consumer healthcare division, including Chattem's U.S. operations, opting instead to integrate it more closely within the company amid strong performance in the sector.

Products and brands

Pain relief brands

Chattem's pain relief brands focus on topical analgesics designed for non-opioid relief of muscle and joint pain, emphasizing counterirritant and effects to provide targeted, localized . These products, including Icy Hot, Aspercreme, Flexall, and Capzasin, cater primarily to consumers experiencing everyday aches from , , or minor injuries, forming a significant portion of Chattem's over-the-counter (OTC) revenue through accessible formats like creams, gels, patches, and roll-ons. As of , these brands are managed under Opella North America, a between and (CD&R). Icy Hot, acquired by Chattem from in the 1990s, originated as a in 1972 under a Drug unit and has since grown into a leading external rub, generating approximately $155.9 million in U.S. sales in 2019. The brand's formulations typically combine (up to 10%) for a cooling sensation with (up to 30%) for warming relief, or lidocaine (4%) with (1%) in modern variants, targeting muscle aches and joint pain through dual-action sensory distraction. Unique features include diverse delivery options such as no-mess roll-ons, PM lotions for nighttime use, and Pro-Therapy supports with therapeutic inserts, introduced in the mid-2000s to enhance user convenience for active lifestyles. Aspercreme, acquired by Chattem in 1998 from Thompson Medical Company as part of a $95 million deal that also included Sportscreme, was originally developed in 1970 by George Sperti to address and general pain without aspirin-like odors. Its core formulation features (10%) as a topical in odor-free creams, while newer lines incorporate maximum-strength lidocaine (4%) for numbing effects on minor pain from strains or sprains. Targeted at and muscle discomfort, the offers variants like fragrance-free lotions and patches, emphasizing discreet, non-greasy application for daily use in managing chronic conditions like . Flexall, a longstanding Chattem brand developed postwar by the Chattanooga Medicine Company, serves as a sports-oriented rub for temporary relief of exercise-induced soreness and minor injuries. Formulated with menthol (7-16%) in an aloe vera base, it includes eucalyptus oil and glycerin for soothing penetration, providing a cooling-to-warming effect without salicylates in some versions. The product's gel and maximum-strength options, often in pump dispensers, target athletes and active individuals, contributing to Chattem's focus on preventive and post-activity within the broader OTC category. Capzasin, a Chattem-developed capsaicin-based line, specializes in relief by leveraging the natural heat from extracts to deplete , a involved in signaling. Key formulations include Capzasin-HP with 0.1% capsaicin in a creme base of glyceryl stearate and petrolatum, or Quick Relief gels combining 0.025% capsaicin with 10% menthol for faster onset. Aimed at chronic joint inflammation, it features no-mess applicators introduced in the and is recommended by pharmacists for long-term use, with variants like arthritis-specific tubes enhancing compliance for conditions such as knee osteoarthritis. These brands collectively underscore Chattem's role in promoting accessible, topical non-opioid solutions, integrating into Opella's global offerings as part of the Sanofi-CDR established in 2025.

Skin and hair care brands

Chattem's and portfolio emphasizes medicated and cosmetic products designed for daily maintenance and targeted relief from common dermatological issues such as dryness, itching, , and environmental damage from sun or exposure. These brands, managed under Opella following Sanofi's 2010 acquisition of Chattem and the 2025 formation of the Sanofi-CDR , integrate into broader consumer efforts while maintaining distinct over-the-counter formulations. A flagship brand, , originated with medicated powders introduced in 1908 for soothing irritated and has evolved into a comprehensive line including lotions and creams for dry conditions. Acquired by Chattem in 1996 from Martin Himmel, Inc. for approximately $40 million, Gold Bond expanded post-acquisition to offer multi-product solutions like the Ultimate Healing Lotion, which incorporates 7 intensive moisturizers to restore barrier function and provide 24-hour hydration. The brand positions itself for everyday , targeting dryness, roughness, and aging with talc-free, dermatologist-recommended formulas containing vitamins A, C, and E. Selsun Blue, an dandruff shampoo acquired by Chattem in 2002 from for $75 million, focuses on specialized for conditions. Its medicated variants feature 1% pyrithione as the active ingredient to inhibit fungal growth and reduce flaking and itching associated with dandruff, while moisturizing options include for daily use. Marketed as a preventive and therapeutic solution, Selsun Blue appeals to consumers seeking effective, non-prescription relief without harsh chemicals. Cortizone-10 provides hydrocortisone-based anti-itch creams for skin irritations, with the maximum-strength 1% formula offering fast relief from minor rashes, eczema, and bites. Introduced as part of Chattem's dermatological lineup, it emphasizes medicated topical application over cosmetic alternatives, incorporating soothing agents like for enhanced comfort during treatment. The brand targets acute skin discomfort, positioning itself as the number-one doctor-recommended itch medicine for temporary relief. For hair care addressing environmental stressors, Sun-In is a spray-in lightener that uses heat-activated ingredients like lemon juice and to create natural-looking highlights without bleach. Developed for sun exposure enthusiasts, it conditions hair with extract and amino acids, marketed as a fun, seasonal product for gradual lightening during outdoor activities. Ultra Swim specializes in chlorine-removal shampoos and conditioners for swimmers, acquired by Chattem in 1986 to address pool-related hair damage. Its moisturizing formula includes humectants, , and to gently strip while preventing dryness and discoloration, suitable for frequent use post-swim. Positioned for athletic hair maintenance, it restores softness and shine in exposed to harsh water chemicals. Herpecin-L serves as a lip protectant for cold sores, featuring and SPF 30 in a balm stick to prevent outbreaks triggered by sun exposure while relieving chapping and pain. Formulated for targeted application on fever blisters, it promotes and blocks UV rays, appealing to users needing dual for sensitive skin. Overall, these brands differentiate medicated options—like those with pyrithione or —for therapeutic needs from cosmetic lines for preventive care, establishing Chattem's role in accessible and hair maintenance.

Health and wellness brands

Chattem's health and wellness portfolio encompasses over-the-counter (OTC) products addressing relief, digestive health, support, oral care, , and nutritional supplements, emphasizing accessible solutions for everyday ailments. As of , these are managed under Opella, a Sanofi-CDR . These brands target consumers seeking non-prescription remedies, with formulations designed for and convenience, such as non-drowsy options for allergies and fast-acting digestive aids. Allegra, featuring fexofenadine as its active ingredient, provides 24-hour non-drowsy relief for symptoms like sneezing, runny nose, and itchy eyes, catering to sufferers of all ages through tablets, liquids, and products like Allegra-D. Following Sanofi's acquisition of Chattem in 2010, Allegra transitioned to OTC status in 2011 under Chattem's management; as of 2025, it is part of Opella's portfolio. Similarly, Nasacort, a , offers steroid-based relief for and , available in 24-hour formulations for adult and pediatric use. In digestive health, antacids, containing and , neutralize stomach acid to alleviate and , available in chewable tablets and softchews. Acquired by Chattem in 2013 from , the brand was revived with updated packaging and a new liquid variant, enhancing its appeal for quick relief. , formulated with , treats and associated symptoms like upset stomach, offered in caplets and liquids for adults and children. For sleep support, Unisom sleep aids utilize as an to promote restful sleep without habit-forming effects, targeted at adults experiencing occasional . In oral care, ACT Mouthwash provides fluoride-based rinses to prevent cavities and strengthen enamel, suitable for daily use across demographics. Women's health products include Pamprin and Premsyn PMS, which combine acetaminophen, , and pyrilamine maleate to relieve menstrual cramps, , and , emphasizing OTC accessibility for women managing premenstrual symptoms. Nutritional supplements like Garlique deliver odor-free extracts with high potency to support cardiovascular health and maintenance. Benzodent denture incorporates for relief alongside secure hold, aiding users with denture discomfort. Chattem divested the weight management brand in 2014 to NVE Pharmaceuticals, streamlining its focus on core and wellness offerings. Overall, these products prioritize broad demographic needs, from and digestive issue management to women's and supplemental , through pharmacist-recommended OTC formats.

Operations

Manufacturing and facilities

Chattem's primary manufacturing operations are centered in , where approximately two-thirds of its over-the-counter (OTC) products are produced across three facilities. Following Sanofi's 2010 acquisition, the company committed to preserving the two existing plants and completing a third 84,000-square-foot facility on South Broad Street, enhancing production capacity for future growth. These sites adhere to U.S. Food and Drug Administration (FDA) current (cGMP) standards for OTC drug production, ensuring compliance through regular inspections and quality assurance protocols. Production at these facilities emphasizes OTC formulations, including medicated powders, lotions, creams, gels, and patches for key brands like and Icy Hot. The process involves precise mixing of active and inactive ingredients, automated filling into containers, and high-speed packaging lines to meet consumer demand for topical pain relief and products. Quality control is integrated throughout, with trained technicians conducting raw material testing, in-process monitoring, and final product validation to verify , stability, and safety before release. Chattem sources active pharmaceutical ingredients and excipients from vetted global suppliers to support its formulation needs, while maintaining robust oversight for reliability and . The Chattanooga facilities' infrastructure originated from historical expansions tied to , when the company, then known as the Chattanooga Medicine Company, ramped up production of medical supplies for the U.S. military and modernized its plants in the post-war period to accommodate growing consumer health demands. Under the joint ownership of and following Opella's formation as an independent company in 2025, the facilities have undergone modernization initiatives focused on , such as process automation and energy optimization, contributing to broader goals including a net-zero emissions target by 2050 and 100% renewable electricity by 2030.

Market distribution and financial performance

Chattem primarily distributes its over-the-counter (OTC) products through major U.S. retailers, including mass merchandisers, stores, and chains, leveraging a national sales organization established prior to its 2010 acquisition by . Key partners such as serve as significant channels for brands like Icy Hot and , enabling widespread availability in physical retail outlets across the country. Additionally, Chattem's products are sold via platforms, including sites integrated with major retailers, reflecting the growing digital shift in consumer healthcare sales. Post-acquisition, has facilitated limited international exports of select Chattem brands, primarily through its global consumer health network, though the majority of distribution remains U.S.-focused. Financially, Chattem achieved retail sales exceeding $1 billion for the first time in , marking a milestone driven by strong performance in pain relief and segments. Following integration into Sanofi's consumer healthcare division, Chattem's operations contributed to the broader segment, which accounted for approximately 12.2% of Sanofi's in 2023, or about €5.3 billion out of €43 billion overall. In 2024, Sanofi's consumer health sales grew modestly at constant exchange rates, supported by stable demand for established OTC brands, though specific Chattem breakdowns are not separately reported due to full integration; Opella reported revenues of €5 billion in 2024. Key portfolio adjustments in the mid-2010s influenced Chattem's financial trajectory. The 2013 acquisition of from for an undisclosed amount bolstered the category, adding a recognizable brand that enhanced earnings through relaunch and expanded distribution, contributing to overall revenue growth that year. Conversely, the 2014 divestiture of to NVE Pharmaceuticals streamlined the portfolio by offloading a brand burdened by prior litigation, allowing reallocation of resources to higher-margin products and positively impacting net earnings by reducing legal exposures. In OTC sectors, Chattem holds a competitive position through brands like Allegra in allergy relief, where it ranked second to Claritin shortly after its 2011 switch to OTC status, capturing significant via rapid national rollout and efforts. For antacids, maintains a niche presence post-relaunch, though it trails leaders like in overall U.S. , benefiting from targeted consumer campaigns in a segment valued at $3.85 billion as of 2024. Recent trends, including sustained post-COVID hygiene awareness, have indirectly supported growth in related Chattem offerings, though specific sanitizer contributions remain embedded within Opella's broader consumer health performance.

References

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