Hanmi Pharmaceutical said Tuesday that it recorded sales of 270.4 billion won ($229.1 million) in the second quarter of this year, up 12.1 percent from the same period of last year.

The company also registered 23.1 billion won in operating profit, up 0.9 percent, while posting a net profit of 20.4 billion won, a drastic 41.7 percent increase. However, the company’s R&D spending fell 11.8 percent to 42.8 billion won, over the period.

“The increase in operating and net profit and the decrease in R&D investment are due to the revised agreement with Sanofi to reduce the burden of joint research funding on Efpeglenatide in June,” the company said.

Improved and modified new drugs such as Amosartan lineup, Rosuzet, Esomezol, and Hanmi Tams, and differentiated products such as Gugu, Palpal and Hanmi Tams, showed continued growth, leading to strong sales.

Beijing Hanmi Pharmaceutical, the company’s Chinese offshoot, marked the sales of 56.4 billion won, a 9.8 percent increase from the same period of 2018.

Due to a 77.7 percent surge in R&D investments in China, however, Beijing Hanmi Pharmaceutical’s operating profit and net profit stood at 2.6 billion won and 2.9 billion won, respectively, the company said.

“We will step up efforts to become a global pharmaceutical company through a stable business model, in which domestic sales, exports, and R&D investments can synergize organically,” a company official said.