IQ-AI Limited (LON:IQAI) shares shot higher after it revealed that its LSN (Liver Surface Nodularity) software application has been approved for its CE Mark.

The CE marking confirms that LSN, which is made by IQ-AI subsidiary Imaging Biometrics, meets the essential requirements of the European Medical Devices Directive.

This follows 510(k) market clearance from the US Food and Drug Administration (FDA) earlier in the month.

READ: IQ-AI’s Imaging Biometrics teams up with Mayo Clinic to develop brain lesion tracking platform

Imaging Biometrics is now permitted to market and sell the software to the world’s two most prominent healthcare markets, IQ-AI said.

The proprietary algorithms in LSN process images from a CT scan of a patient’s liver to assess the nodules along the organ’s surface.

“This virtual biopsy offers a low cost, low-risk, non-invasive alternative that may aid in the staging of CLD and has the potential to become the standard of care for a significant global market,” the London-listed company said.

Shares in IQ-AI jumped over 40% to a high of 16.88p on Monday afternoon.