CHATTEM CHIEF OPERATING OFFICER IS GEORGE DAVY

CHATTEM CHIEF OPERATING OFFICER IS GEORGE DAVY, previously an Exec VP of Miles. Davy, 55, assumes a new executive position at Chattem. An Oct. 1 press release says that two operating divisions (consumer products and chemicals) will report to Davy. Each division has a general manager: Gary Henderson, consumer products; and Robert Boyd, chemicals. Davy is joining the Chattem management at a level between the controlling Guerry family executives (Chairman Alex Guerry and Exec VP Zan Guerry) and other operating managers. Exec VP Zan Guerry also carries the title of president of the consumer products division. The Oct. 1 press release notes that "there will be no changes in the titles or responsibilities of any present Chattem officers." Davy will also join Chattem's board. Davy, a 27-year veteran of Miles, has held two top positions in industry associations. Davy was chairman of the Proprietary Association from 1979 through 1981; he is the president of the World Federation of Proprietary Medicine Manufacturers through May 1989. He has remained active in P-A functions representing Miles on the P-A board in 1987 and chairing the association's international affairs committee. Chattem cited Davy's extensive industry contacts as one of the key attractions behind his appointment. Chairman Guerry said: "We are exceedingly fortunate to have at Chattem a man of George Davy's ability, experience and national and international contacts." At Miles, Davy was most recently involved in international affairs out of a Washington, D.C. office. Chattem's new product introductions are frequently based on acquisitions from other marketers. Recent product acquisitions have been Bullfrog (sunscreen), Ultraswim (shampoo), Algemarin, and Nullo. In its recently released annual report for the fiscal year ended May 31, Chairman Guerry stated that in Fiscal 1987 the company was "in the final stages of negotiations for a consumer products company that would have almost doubled the sales of that division." The consumer division had sales of $48.4 mil. in fiscal 1987 (up 13.5% from 1986). Guerry stated that the company hopes "that before long we will be able to complete a major acquisition in addition to smaller ones." Canada has been targeted by Chattem as a potential new market. Canadian sales of approximately $3 mil. represented 45% of Chattem's non-U.S. business. Davy's first top management position with Miles was with the firm's Canadian subsidiary.