One of the biggest risks that haunts pharmaceutical companies is the patent cliff. Once drugmakers lose patent exclusivity for an internally developed medicine, cheaper generics typically enter the market, leading to lower sales for these products.

Later this decade, pharma giant Pfizer (NYSE: PFE) will have to deal with patent losses for some of its key products, including cancer drug Ibrance and anticoagulant Eliquis. These two therapies could lose patent protection as early as 2027.

However, Pfizer faces a much more immediate issue. Its COVID-19 products, vaccine Comirnaty and medicine Paxlovid, will almost certainly see their sales drop starting next year. To invest in Pfizer, one has to address both the immediate threat of declining coronavirus-related sales as well as longer-term concerns over the patent cliffs the company faces.

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Source Fool.com