Transcript

© Cognis Corporation 2001

“ It never hurts to look a little younger”

© Cognis Corporation 2001

Presentation Outline

• AHCare Concept

• What’s known about AHAs

• Differentiation of AHCare

• Project status/Timelines

• Marketing concept

© Cognis Corporation 2001

PRODUCT PERFORMANCE

Price Efficacy

Mildness

Performance

© 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

© Cognis Corporation 2001

© Cognis Corporation 2001

© 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

The Time Machine for the Skin

© 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

Neostrata Project Product Names

“AHCare”

“AHC”

(Ampho Hydroxy Complex)

© 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

Labels

• Mention Patent-number

• Co-labeling:– With AHCare– Contains AHC

© Cognis Corporation 2001

AHCare

-Sellingpoints-• Efficacy

• Low irritation

• Technology Backup

• Patents

• New claims possible/synergies

• “Easy to handle” Products

• Affordable

© Cognis Corporation 2001


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