Pfizer's problems with cholesterol drugs and patent expiry

Pfizer, Inc. (NYSE:PFE) announced that its experimental drug for lowering cholesterol also raises blood pressure.

A Prudential analyst wrote in a note on the problem that he does not think "it will effect the overall risk versus benefit of the drug in the long run." Goldman Sachs had a different take: "The concerns about blood pressure risk with torcetrapib will be reinforced by these data, however preliminary the data are."

The market seemed to side with Goldman, as Pfizer's shares dropped from a price of $27.22 on Monday to an intraday low of $26.44 yesterday.

The problem that Pfizer has with torcetrapib reflects a much larger concern in the market. As patents on the large money makers at Big Pharma expire, moving some share to generic drug makers, the larger companies must come up with new, patented products.

IMS Health, a research firm, says that $23 billion worth of drugs will go "off patent" this year based on the annual sales of the products. Another $16 billion worth move out of the patented category next year.

Pfizer's new cholesterol drug may be having trouble, but that could be the least of the company's problems.

Douglas McIntyre is a partner at 24/7 Wall St.