This invention is directed to a topical cream containing allantoin in an oil-in-water emulsion formulation. A method is provided for treating or reducing keloid formation in a patient in need thereof comprising contacting the patient's skin with an effective amount of a composition comprising allantoin in an amount from about 3.0% to about 15% by weight and a pharmaceutically acceptable excipient. In contrast to other efforts to reduce keloid formation, the present invention uses topical compositions comprising allantoin as an active pharmaceutical ingredient at higher concentrations and reduces or eliminates the occurrence of keloid formation in a shorter period of time after using the topical composition comprising allantoin.
