The Patent on a Major Drug Produced by a Pharmaceutical

The patent on a major drug produced by a pharmaceutical company will soon expire. Sales of the drug contribute 10% to the company's net income. Which of the following statements is most likely to be true in these circumstances?

A) The P/E ratio will probably fall when the patent ends.
B) The P/E ratio will probably rise because the stock price will rise and the earnings will fall.
C) The P/E ratio will probably fall as investors factor in the future drop in net income.
D) The P/E ratio will probably rise because the stock price will fall and the earnings fall.