1) If you have such products on your face/body then it is best to wash it off first and then perform wudhu. If the lotion has najis products in it then you cannot pray with it on.
2) According to Sayyid Sistani. The wool of the animal is pure, even if it is taken from a dead animal. I do not know about lanolin specifically
3) The establishment of chemical change has to be based on actual fact or information, so for example, a chemist shows that it has in fact converted from one substance to another