© cognis corporation 2001 “ it never hurts to look a little younger”

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Cognis Corporation 2001 It never hurts to look a little younger Slide 2 Cognis Corporation 2001 Presentation Outline AHCare Concept Whats known about AHAs Differentiation of AHCare Project status/Timelines Marketing concept Slide 3 Cognis Corporation 2001 PRODUCT PERFORMANCE Price Efficacy Mildness Performance Slide 4 Cognis Corporation 2001 A) Blends Source Cognis Source Neostrata (Patent & Know How) Customer (Cosmetic Company) Personal Care & Skin Care Formulation Marketing Concept AHC Slide 5 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 Slide 6 Cognis Corporation 2001 Relationship to Neostrata -License Agreement -R+D Agreement - Project Status Slide 7 Cognis Corporation 2001 Alpha Hydroxy Acids OHR=H: Glycolic HOOCC * RR=CH 3: Lactic R=(CH 2 ) 5 CH 3 :Hydroxy HCaprylic R=CHCOOH :Tartaric OH Plus many others *Alpha carbon atom Slide 8 Cognis Corporation 2001 Slide 9 Cognis Corporation 2001 Slide 10 Cognis Corporation 2001 Slide 11 Cognis Corporation 2001 Wrinkles Collagen Changes Cell Turnover Squamation Sebum Production Age Spots Dry Skin Affected Skin Aging Symptoms Slide 12 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 Slide 13 Cognis Corporation 2001 Disadvantage AHAs Old There is no Irritation Problem Safety!? Sunscreens Slide 14 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 Slide 15 Cognis Corporation 2001 The Time Machine for the Skin Slide 16 Cognis Corporation 2001 Signs of Aging in women 35-50 years of age Source: Gallup for Oil of Olay Slide 17 Cognis Corporation 2001 Neostrata Project Product Names AHCare AHC (Ampho Hydroxy Complex) Slide 18 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/-) Slide 19 Cognis Corporation 2001 Amphoteric System Arginine H 2 N C NH -CH 2 CH 2 CH 2 C COO AHC COO NH 2 = C NH CH 2 CH 2 CH 2 C COO CH 3 Lactic AcidHO C COOH H NH 2 H NH 3 NH 2 +- HO C CH 3 H NH 2 H - - ++ Glycolic Acid H HO C COOH H + HO C CH 3 H COO - Slide 20 Cognis Corporation 2001 Prevents Exsiccation Protects by Low pH Anti-microbiological Properties Enzyme Coating Hydrolipid Film Slide 21 Cognis Corporation 2001 SweatSebumKeratinization Lactic Acid+++ Fatty Acid++ Amino Acids++ Pyrrolidone++ Carbonic Acid Urea (Carbamide)++ Components of the Hydrolipid Slide 22 Cognis Corporation 2001 AHCare Ampho Hydroxy Complex Arginine (Moisturizer) AHA (Active) Carbamide (Moisturizer) Other Amino acids (Moisturizer) Slide 23 Cognis Corporation 2001 AHCare Status Testing Neostrata/Cognis Cumulative 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 Slide 24 Cognis Corporation 2001 Results for Facial Sting Study AHCare (high Arginine) vs. 20% Lactic/NH4OH Acid Neutralized, pH=3.5 Sting Sensation Averages *Statistical Significance p