patent cliff

On Monday, Pfizer announced it would sell its Capsugel business to private-equity firm KKR for $2.375 billion. If the hints the drugmaker has been giving lately are true, the move could be the start of two years of major asset sales. Here's what's ahead for the world's biggest pharmaceutical company.

Pharmaceuticals are facing big patent cliff problems this year, but several biotechnology stocks have been doing quite well: Their biologic drugs command high prices, tend become blockbusters, and they are in far less danger from generic competition. Here are the big winners so far this year.

In an update Tuesday, Pfizer said it is discontinuing 15 of the projects in its development pipeline. The news comes a month after the world's largest pharmaceutical company announced large research and development cuts were on the way.

The pharmaceutical industry is ready to fall off a cliff -- a "patent cliff." Over the next few years, some of the world's most popular and lucrative medicines will go off patent, and generic competition will siphon an estimated quarter of a trillion dollars from drugmakers' bottom lines.

It seems that months of merger talks between French pharma Sanofi-Aventis and U.S. biotech Genzyme have entered the home stretch. This week, Sanofi is expected to offer $74 a share for Genzyme, with an option included potentially worth $5 to $6 a share.

Pfizer reported fourth-quarter earnings on Tuesday that nearly quadrupled from a year ago as revenue rose 6%. But it also lowered its sales guidance for 2012, due to some of its bestselling drugs going off patent. What's ahead for the world's biggest drugmaker:

Sanofi-Aventis announced its cancer drug candidate iniparib failed in a late-stage clinical trial. Other pharmaceutical companies have also experienced recent setbacks as they scramble to bolster their pipelines ahead of the patent cliff, when they will be forced to compete with cheaper generics.

Pfizer shares were down more than 1% Monday afternoon despite the pharmaceutical giant's report Sunday of successful late-stage trial results for an experimental rheumatoid arthritis drug. The study showed tasocitinib reduced pain and inflammation and improved physical function in patients with moderately to severely active RA.

With King in its fold, Pfizer -- which makes Lyrica and Celebrex -- believes it can build an industry-leading portfolio of pain relievers. Among King's most appealing entrants in that market is the new Embeda, designed to prevent misuse and abuse.

There's a new plot twist in the takeover battle between French pharmaceutical giant Sanofi-Aventis and U.S. drugmaker Genzyme. A regulatory filing made by Genzyme on Thursday claims Sanofi may be willing to go much higher than its current $69 bid -- a claim the French company disputes.