Lanolin is virtually insoluble in water. By reacting with ethylene oxide, it can be converted into ethoxylated lanolin, a water-soluble derivative.

LANIS ETX 75 is a PEG-75 lanolin; it is one of the most common derivatives, where 75 is the number of moles of ethylene oxide added per mole of lanolin. The derivatives have similar solubilising properties, but very different emollient properties: PEG-75 lanolin has a low degree of emolliency.