Shares in Biocon Ltd, India's top-listed biotechnology company, fell as much as 4.4 percent on Wednesday, after its December quarter net profit fell 15 percent on lower licensing income, which the company expects to rise in future.
The Bangalore-based drugmaker's consolidated net profit fell to 848 million rupees, much below estimates, in the fiscal third quarter ended December 31 from 1.01 billion rupees a year ago.
Analysts expected profit of 931.7 million rupees, according to Thomson Reuters StarMine data.
Its total revenue rose a mere 3 percent in October-December as the licensing fees and income dropped to 292 million rupees from 768 million rupees a year ago.
"Licensing income is a timing issue and subject to periodic variability," Chairman and Managing Director Kiran Mazumdar-Shaw said in a statement.
Biocon develops and outlicenses insulin products to the world's largest drugmaker Pfizer for global sales.
"Moving forward, I think, you will see a greater contribution from licensing in the coming quarters," Shaw told television channel NTDV Profit.
The drugmaker's revenue from domestic formulations business jumped 49 percent in the December quarter to 701 million rupees, while that from the contract research services segment grew 42 percent to 1.12 billion rupees from a year earlier, it said.
Biocon, however, did not provide an update on its proposed oral insulin product IN-105.
Currently, the project is key to the company as there are no insulin tablets available.
"We are continuing to engage with global pharmaceutical companies for partnering the novel IN-105 oral insulin programme," it said.
By 0614 GMT, shares in Biocon were trading down 2.66 percent at 267.25 rupees in a firm Mumbai market.