The present invention relates to a novel extract of the plant Sanguinaria Canadensis (SC) in combination with steroids and/or non-steroidal anti-inflammatory compounds, methods of preparation thereof, and to its use. More specifically, the invention relates to the preparation of a solubilized form of SC consisting of its isoquinolone alkaloids, sanguinarine and chelerythrine, compounded with topical steroids (hydrocortisone, triamcinolone acetonide, betamethasone, betamethasone diproprionate, methylprednisolone acetonate types, et al) and/or non-steroidal anti-inflammatory compounds.This application claims priority to U.S. patent application No. 61/870,227, filed Aug. 26, 2013, the contents of which, in part, are incorporated herein.