On December 2, 2006, Pfizer Inc. announced that it was immediately discontinuing clinical trials of its Torcetrapib drug. Subsequent clinical results showed that patients taking the drug suffered a higher incident of heart attacks than patients taking a placebo. Pfizer reported that it had spent over \($1\) billion on the development of the drug, which had been expected to be a “blockbuster” for the pharmaceutical company. Pfizer’s share price fell 11 percent, or nearly \($2.90\) per share, following the announcement. Discuss the financial statement impact of the announcement to discontinue clinical trials for Torcetrapib. Discuss why Pfizer’s share price declined by 11 percent following the announcement. Discuss the impact of this decision on Pfizer’s financial statements.