Chattem absorbs costs as Sanofi deal nears close
This article was originally published in The Rose Sheet
Executive Summary
The Chattanooga, Tenn., company nudged revenue up 1.9% in fiscal 2009 to $463.3 mil., helped by 4.5% increase in the fourth quarter to $110.2 mil. Full-year net income reached $63.2 mil., a 4.7% dip, the firm said Jan. 28. However, Chattem absorbed a net loss of $4.1 mil. in the three months ended Nov. 30, due to early extinguishment of debt, employee stock option expenses and a non-cash impairment of intangible assets related to the firm's dietary supplement business. Chattem's supplements - including Dexatrim, Garlique and Melatonex - represent about 4% of annual sales. The company did not hold an earnings call to report its financial results, with its acquisition by Sanofi-Aventis near completion (1"The Rose Sheet" Jan. 4, 2010). The French pharma announced Jan. 26 the waiting period under the Hart-Scott Rodino Act passed and the tender offer for all outstanding Chattem shares - at $93.50 each - is set to expire Feb. 8