BUSINESS
SHINING A LIGHT ON COSMETICS Concern about organic sunscreens aired at In-Cosmetics show in Dusseldorf
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MID THE TUMULT AND FERMENT
of the In-Cosmetics show in Dusseldorf, Germany, late last month, word that some widely used sunscreens could be endocrine disrupters raised concern. While more than 2,600 personal care ingredients buyers and sellers milled about in the exhibit hall, what would normally be a staid concurrent scientific meeting raised questions about two organic sunscreens: 4-methylbenzyldiene camphor (4MBC) and octyl methoxycinnamate (OMC). Margaret Schlumpf, an environmental toxicologist with the University of Zurich's Institute of Pharmacology & Toxicology, reported that her research group had tested several organic sunscreens and found in vitro and in vivo evidence that some had estrogenic activity. Two in particular—4MBC and O M C —increased uterine weight of young hairless rats immersed in a mixture of the sunscreens and olive oil. BOTH 4-MBC AND OMC are widely used in sunscreen formulations. FDA approved O M C as an over-the-counter drug in the U.S., and formulators use it widely; 4-MBC is approved as a cosmetic ingredient in Europe and is used in the European community The institute's test results suggested, Schlumpf said, that these widely used sunscreens ought to be further investigated. However, Gerhard J. Nohynek, principal toxicologist for cosmetics formulator EOreal, countered that sunscreen penetration of the skin is small. Consumers take a greater risk that they will develop skin cancer if they do not use a sunscreen than they do in using a product which may have some slight estrogenic activity, he said. Nohynek said that while Schlumpf's findings were interesting, he still thought there was little real risk associated with the use of 4-MBC and OMC. "We live in a sea of estrogenic compounds," Nohynek pointed out. Plant estrogens, such as the soy derivative genistein, and the flavonoids found in food have many times greater estrogenic activity than that found in the two organic sunscreens identified by Schlumpf, he said. 26
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In a discussion following the formal presentations, Nohynek contended that Schlumpf's research confused hazard determination with risk assessment. "^Vbu can't talk about one without the other. And you need to do a relative risk assessment," he said. However, Schlumpf said her group's approach mostly called attention to the bioaccumulative effect of the sunscreens, and it was on that basis that the research was presented. Schlumpf added that at this point her group was only identifying a possible hazard. And just because 4-MBC and O M C appear to penetrate the skin of hairless rats, it does not mean those compounds will penetrate human skin. "Wait a few months," she said, as her group does further investigation. While the controversy over sunscreens raged in seminar rooms above the In-Cosmetics show exhibit floor, ingredients buyers and sellers carried on a brisk interchange below. There, the talk was not so much about potential sunscreen problems as about the continuing growth within the sunscreen category Many attendees were intrigued by new surfactants from companies such as Cognis, Sasol (now the owner of Condea), and Uniqema that allow formulators to manufacture waterlike sprayable emulsions containing sunscreens. Also on the exhibit floor, two of the largest ingredient makers, Degussa and Cognis, not only displayed their products, but also answered questions about their new corporate organizations. The utility E.ON, which holds 65% of Degussa's
INFORMATION EXCHANGE Ingredient buyers and sellers mixed and mingled on the exhibit floor.
shares, recendy said it would divest Degussa in order to focus on the energy business. Heinz-Joachim Wagner, a member of Degussa's board of management, said in an interview at the company's new headquarters in Dusseldorf—the company recently moved from Frankfurt—that it was up to E.ON to decide whether it would sell its shares to the public or sell the company to a strategic buyer. A change in ownership would probably take place within the next five years, Wagner said, but it was unlikely to take place very soon. That would give Degussa time to reorganize and continue to rearrange its portfolio of businesses—it just sold its colors and catalysts business dmc 2 to O M Group—and make acquisitions, too. Wolfgang Rupilius, general manager of Degussa's care specialties business unit, said the unit he manages is now part of the larger performance chemicals division—a business that also includes superabsorbents, oligomers, and silicone. The new care specialties organization includes Goldschmidt and Cosmoferm— two names that will become less prominent as Degussa reorganizes. Cosmoferm, a maker of ceramides, vitamins, and enzymes that Goldschmidt bought two years ago, may survive as a brand name, Rupilius said. Care specialties also includes the former Witco oleochemicals and derivatives group that Goldschmidt acquired in 1999. SHAREHOLDERS OF HENKEL, meanwhile, just approved a plan to divest its chemical subsidiary Cognis, putting Henkel closer to an exit from chemicals than E.ON. But Antonio Trius, a member of the Cognis board of management, said an initial public offering of Cognis is unlikely in today's financial markets. Depending on whether Henkel sells Cognis to an industrial or a financial buyer, a sale of shares to the public could be possible in the future. Although Cognis is still part of Henkel, it's making financial decisions based on its own needs and those of its customers. Trius pointed out that Cognis bought cosmeceuticals maker Laboratoires Sérobiologiques at the same time that it was financially separating from Henkel in 1999. And at the end of March, Cognis bought Barcelona-based Laboratorios Dr. Vinyals, a specialist in botanical extracts. While Cognis and Degussa face the uncertainties of the future with plans for survival, the controversy over organic sunscreens O M C and 4-MBC suggests a tumultuous ride in the months ahead for some ingredient makers and formulators.—MARC REI5CH
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