Shares of Shockwave Medical (NASDAQ: SWAV) were up 10.69% early Tuesday afternoon after the Centers for Medicare and Medicaid Services (CMS) unveiled a proposed rule that detailed new payment codes for coronary intravascular lithotripsy (IVL), which is performed by a system that Shockwave manufactures. Shockwave's IVL uses sonic pressure waves to break up hardened plaque in arteries. 

Not only do the proposed new codes mean more money for Shockwave -- an estimated $4,000 to $5,000 more per procedure -- but it also shows that the CMS is recognizing the value of the IVL. This will go a long way toward getting more physicians to use the system.

Shockwave has estimated the procedure's total addressable market could be worth $8.5 billion a year. The stock is up more than 21% so far this year.

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Source Fool.com