The recent performance of some big pharma stocks might have some investors thinking that the patent cliff is nothing to worry about. It's easy to understand how that sort of attitude could exist. Take the performance of a stock like Eli Lilly (NYSE:LLY) as an example. Shares have risen some 35% in the past year despite the fact that two huge drugs come off patent next year.

In the following video, health care bureau chief Brenton Flynn runs through the situation, and outlines some recent news that could help the company offset these losses by taking share in the lucrative diabetes market.