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© Cognis Corporation 2001
Presentation Outline
• AHCare Concept
• What’s known about AHAs
• Differentiation of AHCare
• Project status/Timelines
• Marketing concept
© Cognis Corporation 2001
A) Blends
Source Cognis
Source
Source
Neostrata(Patent & Know How)
Customer(CosmeticCompany)
Personal Care & Skin Care Formulation
Marketing Concept AHC
© Cognis Corporation 2001
10 % Addition
AHCare Premix Concept
Finished Formulation
6.5% AHC
Formulation
AHCare
(60/65% active)
in Water
+ Emollients
+ Thickener
+ Water
+ Perfume
+ Preservatives
+ Emulsifiers
© Cognis Corporation 2001
Relationship to Neostrata
- License Agreement
- R+D Agreement
- Project Status
© Cognis Corporation 2001
Alpha Hydroxy Acids
OH R = H: Glycolic
HOOC C* R R = CH3: LacticR = (CH2)5 CH3 :Hydroxy
H CaprylicR = CH COOH :Tartaric
OHPlus many others
*Alpha carbon atom
© Cognis Corporation 2001
• Wrinkles
• Collagen Changes
• Cell Turnover
• Squamation
• Sebum Production
• Age Spots
• Dry Skin
Affected Skin Aging Symptoms
© Cognis Corporation 2001
AHA Skin Irritation
1. Lower pH Formulation
2. Uncontrolled AHA Release, Penetration
3. Alkali in Partial Neutralization
4. Inherent Property of AHA
5. Inherent Skin Type
© Cognis Corporation 2001
Disadvantage AHA’s
• Old
• “There is no Irritation Problem”
• Safety!?
• Sunscreens
© Cognis Corporation 2001
AHAs - Summary
• AHAs Are Not New
• Long Recognized Benefits for Dry Skin
• Dramatic Benefits Beyond Moisturization
• Mechanism of Action Not Known
• Actions on Stratum Corneum Can Explain Main Clinical Effects
• Safe Natural Ingredients
© Cognis Corporation 2001
Signs of Agingin women 35-50 years of age
45%
23%
13%
10%
5%
Wrinkles around eyes
Lost skin firmness
Change in skin tone
Loose skin around eyes
Wrinkles on forehead
Source: Gallup for Oil of Olay
© Cognis Corporation 2001
Tasks AHCare Project
1 - Prove Superiority of AHC (11/99-02/00).
2 - Develop Standard Products (8/99-2/00).
3 - Generate Marketing Arguments (11/99-12/00).
4 - Start Market Introduction (5/00)
5 - Develop Further Products (5/00/-…)
© Cognis Corporation 2001
Amphoteric System
Arginine H2N – C – NH –-CH2 – CH2 – CH2 – C – COO
AHC COO NH2 = C – NH – CH2 – CH2 – CH2 – C – COO
CH3
Lactic Acid HO – C – COOH
H
NH2
H
NH3NH2
+-
HO – C – CH3
H
NH2
H
-
-
++
Glycolic Acid
H
HO – C – COOH
H
+
HO – C – CH3
H
COO-
© Cognis Corporation 2001
• Prevents Exsiccation
• Protects by Low pH
• Anti-microbiological Properties
• Enzyme Coating
Hydrolipid Film
© Cognis Corporation 2001
Sweat Sebum Keratinization
Lactic Acid +++
Fatty Acid ++
Amino Acids + +
Pyrrolidone ++Carbonic Acid
Urea (Carbamide) + +
Components of the Hydrolipid
© Cognis Corporation 2001
AHCare
Ampho Hydroxy Complex
Arginine(Moisturizer)
AHA(Active)
Carbamide(Moisturizer)
Other Amino acids
(Moisturizer)
© Cognis Corporation 2001
AHCare Status Testing
Neostrata/CognisCumulative irritation Glycolic solution: Irritation reduction
Sting test Lactic Acid: Significant irritation reduction
Sting test Glycolic: Significant irritation reduction
Cumulative irritation Glycolic cream: Irritation reduction
Cell turnover Strong Increase
© Cognis Corporation 2001
Results for Facial Sting Study AHCare (high Arginine) vs.
20% Lactic/NH4OH Acid Neutralized, pH=3.5
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
ArginineNH4OH
0.1
0.4
*0.8
10 seconds 2 minutes 5 minutes 8 minutes
0.1
0
*0.7
0
*0.5
Stin
g S
ensa
tion
Ave
rage
s
*Statistical Significance p<0.05
© Cognis Corporation 2001
Results for Facial Sting StudyAHCare (high Arginine)
10% Glycolic/ Arginine, pH=3.5
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
AHCNH4OH
0.39
0.66
*1.458
10 seconds 2 minutes 5 minutes 8 minutes
0.62
0.47
*1.46
0.26
*1.06
Stin
g S
ensa
tion
Ave
rage
s
*Statistical Significance p<0.05
© Cognis Corporation 2001
kinetics
0 2 4 6 8 10 12 14 160.0
0.5
1.0
1.5
2.0
2.5
AHC
AHA
Irritation Threshold
C
on
cen
tra
tion
Time (arb. units)
© Cognis Corporation 2001
AHCare L 65 Cell Turnover Study
10%
0 2 4 6 8 10 12 140.0
0.5
1.0
1.5
2.0
2.5
3.0
AHCare.opj (G1)
Lactic AHCare Control
Flu
ores
cenc
e In
tens
ity (
arb.
uni
ts)
Day
© Cognis Corporation 2001
Overview on targeted AHCare Effects
REDUCED IRRITATION
CELL TURNOVER
SKIN COLOR
MOISTURIZATIONSTRATUM CORNEUM
STRUCTURE
EPIDERMISTHICKENING
COLLAGEN SYNTHESIS
ANTI WRINKLE
© Cognis Corporation 2001
How to MarketValue Proposition for Skin Care Customers
When you buy a AHCare skin care ingredient from Care Chemicals - you get all the following:
Example Cognis Product “AHCare G 60”
• A high quality skin care active ingredient controlled for both safety and efficacy.
• The product price includes a license fee that enables you to operate under Neostrata patents on a worldwide basis.
• Formulation support - including frame formula development vs. target, laboratory mixing procedures, stability data. This support includes technology to assure maximization of efficacy and minimization of irritation during formula evolution.
• Claims substantiation support. This includes test methods for both in-vitro and in-vivo methods.
© Cognis Corporation 2001
Clinical effects
• Exfoliation
• Moisturization
• Reduced Appearance of Fine Lines and Wrinkles
• Skin “Plumping”
• Firmness
• Elasticity
• Even Skin Toning
• Synergies with Other Ingredients
© Cognis Corporation 2001
Patented Claims
• Reduction of Fine Lines and Wrinkles
• Signs of aging
• Dry Skin
• Age Spots
• Acne
© Cognis Corporation 2001
AHCare
-Sellingpoints-• Efficacy
• Low irritation
• Technology Backup
• Patents
• New claims possible/synergies
• “Easy to handle” Products
• Affordable