Pfizer's Worst-Case Scenario

This column was originally published on RealMoney on Dec. 4 at 2:04 p.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

In a surprising turn, Pfizer (PFE Quote) released the news over the weekend that it was discontinuing its lead pipeline project, torcetrapib, an HDL-raising cholesterol treatment.

This project was in development for use with Pfizer's largest franchise, Lipitor, which lowers LDL cholesterol levels. This combination treatment was expected to help the company preserve its industry-leading share of the cholesterol-drug market and its $13 billion Lipitor franchise through the expiration of its patent in 2010.

The company has second-generation HDL-raising projects further back in development, but the timing of these and other pipeline projects is unlikely to replace this lost opportunity. It now faces a much more difficult course over the next several years. ...