Impact of Patent Expiration on Pharmaceutical Profitability

You are performing a deep dive analysis of a large multinational pharmaceutical company that has recently expanded into new markets in Asia. The company has invested heavily in research and development, resulting in several new drugs slated to launch over the next two years. While analyzing, you come across the following critical factors:

1. The company's revenue growth rate over the past five years has exceeded the average industry growth rate. However, competition in the new markets is intense, with local firms bringing generics to the forefront.

2. The recent drugs under development have received significant investment, yet there are looming patent expirations on blockbuster drugs that substantially contribute to revenue.

3. The company has maintained a healthy operating margin despite escalating costs linked to the rising price of active pharmaceutical ingredients (APIs).

Based on your analysis, which of the following factors is likely to have the MOST significant impact on the company's future profitability?