Just after market close on Tuesday, specialized medical device company HeartFlow (HTFL 14.13%) was the very picture of health, as far as its stock was concerned. The company's shares saw a robust 14% boost in price, thanks largely to a nod from one of the world's top health regulators. The fact that this occurred on a day when the S&P 500 (^GSPC -0.55%) landed slightly in negative territory was also a plus.
A heartening development
HeartFlow's market-moving announcement was that the U.S. Food and Drug Administration (FDA) granted approval for its HeartFlow Plaque Analysis algorithm. Following that, the company said the product is now available for sale.
Image source: Getty Images.
Plaque, in this case meaning a buildup of harmful substances like fat and cholesterol inside the heart, can become a serious threat if left unchecked. HeartFlow said its program boasts a set of cutting-edge features, including advanced 3D renderings of the organ's interior with each plaque type color-coded. This allows for detailed evaluation of the types and severity of a patient's plaque buildup.
The highly specialized healthcare products maker didn't hesitate to add that the approved version of HeartFlow Plaque Analysis demonstrated 21% improvement in detecting plaque over the first-generation version of the product. It also said that the product is powered by data from roughly 273,000 patients.
Already covered
Another piece of good news reported by HeartFlow is that major health insurer Cigna has updated its policies to cover the use of HeartFlow Plaque Analysis by patients. The company said Cigna's move will become effective next Wednesday, Oct. 1.
