ConforMIS Spikes On Australian Approval News

Shares of ConforMIS CFMS traded up as high as 37% in Tuesday's pre-market trading session.

The company released a press release stating that the Therapeutic Goods Administration, part of the Australian Department of Health, cleared ConforMIS's total knee replacement system.

Why It's Important: The global knee-replacement market is valued at around $9 billion. Now that the system is cleared in another major country, the company looks to be a serious global player in the growing market.

"The iTotal® PS system, which launched in the United States in 2016, is designed to address the shortcomings of traditional, off-the-shelf knee replacements that are manufactured in limited sizes and shapes," the company said. "iTotal® PS implants are specifically designed to restore the natural shape of each patient's knee, and to avoid overhang, rotation, and sizing compromises associated with pain after surgery."

What's Next: Investors hope this news will continue to push the stock higher. The company also noted in that more than 50,000 knee replacements are performed in Australia each year.

The stock traded higher by 10% to $1.17 at publication time. On Monday, the medical technology company closed at $1.04 a share.