<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-12-03</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001330487</issuerCik>
        <issuerName>CHEM RX CORP</issuerName>
        <issuerTradingSymbol>PMQC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001393825</rptOwnerCik>
            <rptOwnerName>Hudson Bay Capital Management, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>120 BROADWAY, 40TH FLOOR</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10271</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001354129</rptOwnerCik>
            <rptOwnerName>Hudson Bay Fund LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUDSON BAY CAPITAL MANAGEMENT, L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>120 BROADWAY, 40TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10271</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001416398</rptOwnerCik>
            <rptOwnerName>Hudson Bay Overseas Fund Ltd.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUDSON BAY CAPITAL MANAGEMENT, L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>120 BROADWAY, 40TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10271</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001416593</rptOwnerCik>
            <rptOwnerName>Gerber Sander</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUDSON BAY CAPITAL MANAGEMENT, L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>120 BROADWAY, 40TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10271</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001416690</rptOwnerCik>
            <rptOwnerName>Roth Yoav</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUDSON BAY CAPITAL MANAGEMENT, L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>120 BROADWAY, 40TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10271</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001416391</rptOwnerCik>
            <rptOwnerName>Doscas John</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HUDSON BAY CAPITAL MANAGEMENT, L.P.</rptOwnerStreet1>
            <rptOwnerStreet2>120 BROADWAY, 40TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10271</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, par value $0.0001 (&quot;Common Stock&quot;)</value>
            </securityTitle>
            <transactionDate>
                <value>2007-12-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.45</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1438999</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes (1) and (2)</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-12-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.40</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1436999</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes (2) and (3)</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Hudson Bay Capital Management, L.P., a Delaware limited partnership, acts as the investment manager of (i) Hudson Bay Fund
 LP, a Delaware limited partnership, which holds 618,769  shares of Common Stock and (ii) Hudson Bay Overseas Fund Ltd.
 (together with Hudson Bay Fund LP, the &quot;Hudson Bay Funds&quot;), a Cayman Islands company, which holds 820,230 shares of Common
 Stock.</footnote>
        <footnote id="F2">Hudson Bay Capital Management, L.P. acts as the investment manager of the Hudson Bay Funds and may be deemed, as of the date
 hereof, to be the beneficial owner of the Issuer's securities or derivative securities held by such funds.  Sander Gerber,
 Yoav Roth and John Doscas are each an executive officer of Hudson Bay Capital Management, L.P.  Hudson Bay Capital
 Management, L.P., Sander Gerber, Yoav Roth and John Doscas do not hold directly any of the Issuer's securities or derivative
 securities with respect thereto, and disclaim any beneficial ownership of any of the Issuer's securities or derivative
 securities reported or excluded herein for purposes of Rule 16a-1(a) under the Securities Exchange Act of 1934, as amended,
 except for their pecuniary interest therein.</footnote>
        <footnote id="F3">617,910 shares of Common Stock are attributable to Hudson Bay Fund LP and 819,089 shares of Common Stock are attributable
 Hudson Bay Overseas Fund Ltd.</footnote>
    </footnotes>

    <remarks>The Power of Attorney dated as of December 5, 2007 executed by John Doscas and Sander Gerber, authorizing Yoav Roth to sign
 and file this Form 4 on John Doscas' and Sander Gerber's behalf, is attached hereto as Exhibit 24.1.</remarks>

    <ownerSignature>
        <signatureName>Hudson Bay Fund LP, By: Hudson Bay Capital Management, L.P., its Investment Manager Partner, By: /s/ Yoav Roth, Principal and Portfolio Manager</signatureName>
        <signatureDate>2007-12-05</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Hudson Bay Overseas Fund Ltd., By: Hudson Bay Capital Management, L.P., its Investment Manager Partner, By: /s/ Yoav Roth, Principal and Portfolio Manager</signatureName>
        <signatureDate>2007-12-05</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Hudson Bay Capital Management, L.P., By: /s/ Yoav Roth, Principal and Portfolio Manager</signatureName>
        <signatureDate>2007-12-05</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>SANDER GERBER, /s/ Yoav Roth, By: Yoav Roth, as Attorney-in-Fact for Sander Gerber</signatureName>
        <signatureDate>2007-12-05</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>YOAV ROTH, By: /s/ Yoav Roth</signatureName>
        <signatureDate>2007-12-05</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>JOHN DOSCAS, /s/ Yoav Roth, By: Yoav Roth, as Attorney-in-Fact for John Doscas</signatureName>
        <signatureDate>2007-12-05</signatureDate>
    </ownerSignature>
</ownershipDocument>
