Ammonium lactate lotion is a prescription lotion designed to heal excessively dry, chapped, irritated skin, or scaly skin.It also provides temporary relief of the itching associated with these conditions. Composed of an alpha-hydroxy acid, it is effective at hydrating the outer layer of the skin.ngredients. Ingredients found in commonly prescribed 12 percent ammonium lactate lotion include mineral oil, glyceryl stearate, PEG-100 stearate, propylene glycol, polyoxyl 40 stearate, glycerin, magnesium aluminum silicate, laureth-4, cetyl alcohol, methyl and propyl parabens, methylcellulose, fragrance and water.