Chattem Gets Investors in a Lather

Investors snapped up shares of Chattem (CHTT) Oct. 6 after the consumer products maker announced plans to acquire the U.S. rights to five over-the-counter brands from Johnson & Johnson (JNJ) and the consumer health care business of Pfizer (PFE) for $410 million.

The brands being acquired by Chattem are Act, an anti-cavity mouthwash/mouth rinse; Unisom, an over-the-counter sleep aid; Cortizone, a hydrocortisone anti-itch product; Kaopectate, an anti-diarrhea product; and Balmex, a diaper rash cream. These products are being divested in connection with the acquisition by Johnson & Johnson of Pfizer Consumer Healthcare unit and certain regulatory requirements in connection with that acquisition, the company said.