Ammonium lactate cream treats dry, scaly skin and the associated itching, according to WebMD. The medicine works by increasing the moisture content of the skin.
People who are allergic to mineral oil, glycerin or propylene glycol should not use the medicine, and people with sensitive skin are more likely to develop skin irritation as a side effect of using it, according to Drugs.com. Other common side effects include mild dryness of the skin and increased bruising or skin discoloration on the application site. If a person experiences a severe stinging sensation when using the product, then she should discontinue use and call the doctor. Additionally, a person who experiences hives, trouble breathing or swelling of the face or lips requires immediate emergency care.