On January 2nd, I wrote a bullish article on Sanofi (NYSE:SNY), with a thesis stating that the company's extensive pipeline and promising portfolio of marketed assets were compelling reasons to accumulate shares. However, I also factored in the underlying risk to a Sanofi investment, since, after all, the company is one of many expected to suffer from patent expirations and lackluster performance (see previous article for more details).

For Sanofi, these issues have continued to exacerbate top-line pressure, prompting concern about its future prospects. But after Sanofi and its partner Regeneron (NASDAQ:REGN) announced that the EMA has accepted the recently submitted MAA for Praluent, there is more evidence to support my claim that Sanofi has excellent long-term growth prospects. As a result, I reiterate my bull thesis.

This is a positive development for Sanofi.

Praluent is targeting a large market in Hypercholesterolemia, which reportedly sat at $29.4 billion in 2010 and is projected to expand at 3.9% CAGR over the next two years to $38.5 billion by 2017.

A favorable EMA decision, therefore, is paramount because the company's participation in this market would potentially allow it to offset the negative impact of the patent cliff for some of its major revenue drivers, including Lantus, Fabrazyme, and Multaq. In order to optimize revenue flow, it is also important for the BLA for Praluent to be accepted by the FDA in the coming months. Given Sanofi's potential in this indication, I see no reason to amend my bull thesis.