Shares in Osprey Medical have soared after a new version of its main product received regulatory approval for use in the United States.

The US Food and Drug Administration has cleared the second generation of Osprey’s AVERT System, which helps reduce the risk of kidney damage caused by a toxic dye that is used in some forms of heart surgery.

The company expects to soon be selling the product in Texas, where several hospitals have been using the first generation AVERT System, ahead of a planned rollout across the US.

Easier to use than its previous version, the new system does not require Osprey support staff when used.

Osprey was established in Melbourne, and listed on the local share market in 2012.

Its shares were up eight cents, or 17.8 per cent, at 53 cents at 1340 AEST.