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Chattem Q2

This article was originally published in The Tan Sheet

Executive Summary

Gross margin based on total revenues reached 72.2%, due in large part to completion of the integration of Selsun Blue manufacturing into Chattem's facilities, CEO Zan Guerry says during June 20 analysts call. For second quarter ended May 31, Chattem recorded an 8% increase in total revenues to $63.6 mil. and a 33% jump in net income to $7.5 mil. Guerry maintained the imminent launch of Icy Hot Back Patch, coupled with the introduction of a new topical analgesic in Q1 2004, should substantially boost sales for the firm (1"The Tan Sheet" March 24, 2003, In Brief). Q2 topical analgesic sales were down year-over-year, Guerry noted, due to success of competitor P&G's ThermaCare heat wraps...

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