(Reuters) - Cardiovascular Systems Inc received U.S. Food and Drug Administration approval to start selling its heart device to treat severe calcium deposits in coronary arteries, sending its shares up as much as 23 percent.
The device, Diamondback 360 Coronary Orbital Atherectomy System, will be launched immediately after the FDA’s marketing approval, the company said on Tuesday.
Plaque build up, including calcium deposits, in arteries reduces blood supply to the heart, leading to coronary artery disease.
The company estimated the U.S. market opportunity for the device to exceed $1.5 billion annually.
Wunderlich Securities analyst James Terwilliger raised his price target on the company’s stock to $30 from $24.
Cardiovascular shares touched a near six-year high of $27.90 in early trading on the Nasdaq, but eased back to $26.86.
Reporting by Natalie Grover in Bangalore; Editing by Sriraj Kalluvila, Maju Samuel