Chattem changes name to Sanofi to align local business with global operations

Chattem's longtime offices in St. Elmo are sporting the new Sanofi name. Paris, France-based Sanofi purchased Chattem in 2010. (Staff photo by Mike Pare)
Chattem's longtime offices in St. Elmo are sporting the new Sanofi name. Paris, France-based Sanofi purchased Chattem in 2010. (Staff photo by Mike Pare)

Name changes

1879Chattanooga Medicine Co. founded1966 Chattem Drug & Chemical Co.1978 Chattem Inc.2017 Sanofi’s Chattanooga campus

The name is changing, but one of Chattanooga's longest-running companies will keep its roots in the city.

Chattem, known for such popular brands as Allegra, Gold Bond and Icy Hot, is phasing out the name it has used since 1966 in favor of that of parent Sanofi.

Robert Long, head of North America consumer health care for Sanofi, says the business that traces its start to nearly 140 years ago as Chattanooga Medicine Co., plans to continue to invest and grow in the Scenic City.

"It doesn't mean any job relocations to other areas in the U.S.," Long said about the name change. "We are the focus for Sanofi in the consumer health care business unit. There's alignment. There's focus on additional growth and, frankly, more opportunity."

Sanofi, the Paris, France, pharmaceutical giant that bought Chattem in 2010 for $1.9 billion in cash, earlier this year closed a deal with Germany-based Boehringer Ingelheim that brought supply and distribution of products Zantac and Dulcolax to Chattem.

Long said that global transaction coupled with the growth generated at Chattem and at Sanofi's consumer health care business in other regions of the world have helped drive the name change.

photo Staff file photo by John Rawlston/ A Sanofi employee works on the production line at the company's manufacturing facility on South Broad Street.

By the numbers

$1.5 billion Expected revenues for Sanofi’s Chattanooga operations in 2017750 Number of employees in Chattanooga138 Years the business has operated in the citySource: Sanofi

Consumer health care is now a global business platform for Sanofi, and one name leads to "a natural harmonization" worldwide, he said.

"One name. One corporate identity. That became the focus, and necessary," Long said.

Charles Wood, the Chattanooga Area Chamber of Commerce's vice president of economic development, said Sanofi is a European and global brand.

"Chattanooga is the European corner of the state," he said, citing companies from that part of the world such as Volkswagen which have large operations here. That's important as the city tries to recruit even further investment, Wood said.

Founded in 1879

Chattem was founded as the Chattanooga Medicine Co. in 1879, starting operations in a small two-story brick building on Market Street downtown, according to the company. At the time, Chattanooga consisted of fewer than 10,000 people whose occupations often centered around the railroad and a river port.

The company's principal founder was Zeboim Cartter Patten, who originally came from Illinois to Chattanooga by way of the Union Army.

He was joined by four other charter members - Fred F. Wiehl, H. Clay Evans, Lew Owen and Theodore G. Montague, all well-known Chattanooga businessmen during the period. The company began with $25,000 in capital, according to the business.

In 1966, the company became Chattem Drug & Chemical Co. That was shortened to just Chattem in 1978.

Revenues tripled

Long, who became CEO in 2014 after succeeding longtime chief Zan Guerry, said that when Sanofi purchased Chattem in 2010, it was a $500 million-a-year business. That figure has tripled since then to an expected $1.5 billion in gross revenues this year, he said.

Also, Chattem employed 580 in 2010. The operation will finish 2017 with 825 employees, all but 75 of those in Chattanooga, Long said.

"We remain proud of our heritage. That remains firm in our DNA, in our culture," he said, citing Guerry's contributions to the business over his 25 years. "It remains important to us how we go about our day-to-day business - to do business right, treat people the right way - remains the same regardless."

In addition, Long said, Chattem has been seen as a key supporter of Chattanooga.

"[The name change] doesn't mean that is going to change," he said.

The corporate office in Chattanooga already has swapped out names, as has its South Broad plant, and plans are to phase in Sanofi across the business, Long said.

"Product packaging will be done strategically over a period of time as we exhaust current inventory," he said. "It will be rolled in as it makes good business sense."

The change at its website is under construction, Long said.

Looking ahead, the CEO said he sees more opportunity for Sanofi's Chattanooga operations as it focuses on added growth.

Earlier this year, allergy medicine Xyxal Allergy 24HR hit store shelves as a switch was made from prescription to over-the-counter sales.

In 2011, Chattem took the blockbuster allergy medicine Allegra from a prescription to an over-the-counter product. About two years later, Chattem did the same for nasal allergy spray Nasacort.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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