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© 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 Neostrata (Patent & Know How) Customer (Cosmetic Company) 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 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
© 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 Aging in women 35-50 years of age 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 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 -
© Cognis Corporation 2001 Prevents Exsiccation Protects by Low pH Anti-microbiological Properties Enzyme Coating Hydrolipid Film
© Cognis Corporation 2001 SweatSebumKeratinization 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/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
© 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<0.05
© Cognis Corporation 2001 Results for Facial Sting Study AHCare (high Arginine) 10% Glycolic/ Arginine, pH=3.5 Sting Sensation Averages *Statistical Significance p<0.05
© Cognis Corporation 2001 kinetics
© Cognis Corporation 2001 AHCare L 65 Cell Turnover Study 10%
© Cognis Corporation 2001 Overview on targeted AHCare Effects REDUCED IRRITATION CELL TURNOVER SKIN COLOR MOISTURIZATION STRATUM CORNEUM STRUCTURE EPIDERMIS THICKENING COLLAGEN SYNTHESIS ANTI WRINKLE
© Cognis Corporation 2001 How to Market Value 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
© Cognis Corporation 2001 Now it never hurts to look a little younger. ™
© Cognis Corporation 2001 AHCare Efficacy Verification.
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