Drug makers Pfizer Inc. and Eli Lilly & Co. were hurt by the “patent cliff,” with each reporting declines in fourth-quarter profit due to new generic competition for top-selling drugs. Both companies also spoke cautiously about experimental Alzheimer’s disease drugs they’re developing separately, though investor enthusiasm has mounted in the off chance that one or both of the drugs will reach the market. Key clinical data for both drugs are due out later this year. Pfizer’s profit declined 50% as its blockbuster cholesterol-lowering pill Lipitor became exposed to competition from generic copycat versions in the U.S. on Nov. 30. Lilly’s profit dropped 27%, with its antipsychotic Zyprexa facing generic rivals since October.
