Hugel said Wednesday that it recorded 42.9 billion won ($38.2 million) sales in the second quarter of this year, a 6.4 percent decrease from the previous quarter.

The botulinum toxin (BTX) manufacturer also registered 19.6 billion won in operating profit and 18.1 billion won in net profit in the same period, losing more than 11.9 percent and 14.7 percent, respectively, from the preceding quarter.

Hugel attributed continued revenue decline to delayed recovery of exports for toxin and HA filler in Asia, as well as increased expenses, including TV advertising for Wellage cosmetics.

This is the second fiscal quarter that the company reported a loss in their sales and operating profit.

During its first quarterly report, the company noted that non-recurring expenses, including post-merger integration with Hugel Pharma and Hugel Meditec, and TV advertising and promotion for Wellage were among the leading causes behind the fall of the company’s operating profit.

Despite the underperformance, Hugel anticipates that overall sales will recover in Asia while seeing strong performance from its Botulax in fast-growing markets such as Latin America and Eastern Europe. Hugel also plans to strengthen its marketing effort for the “Chaeum,” its hyaluronic acid (HA) filler, to further bolster its position in the domestic facial HA filler market.

“Botulax is being marketed in 26 countries, while the company expects to enter the big three markets such as US, Europe, and China shortly,” a company official said. “Chaeum is also exported to 14 countries and is expecting approvals in six more countries, including China, Brazil, and Chile.”

Other projects include its agreement with Hanmi Pharmaceutical to co-promote Gugu filler, a new hyaluronic acid filler product for penis enlargement, and the completion of phase I clinical trial for BMT-101, RNAi technology-based anti-scarring therapeutics.

“We will continue to distinguish ourselves in the global market by concentrating our resources and manpower to open up new market opportunities,” Hugel CEO Sohn Ji-hoon said.

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