Here's why the BPH Energy (ASX:BPH) share price is surging 5% today

BPH shares look set to finish the week higher.

The BPH Energy Ltd (ASX: BPH) share price is roaring higher during afternoon trade on Friday.

This comes as the biotechnology and mineral exploration company announced an update in regards to its investee company, Cortical Dynamics.

At the time of writing, BPH shares are up 5.08% to 6.2 cents. It's worth noting that its shares reached an intraday high of 6.7 cents before treading lower.

An anaesthetist in an operating theatre looks at a computer screen while patient sleeps

Image source: Getty Images

What did BPH announce?

Investors are pushing the BPH share price upwards after digesting the company's latest positive update.

According to its release, BPH advised that Cortical Dynamics has filed a 510(k) submission with the United States Food and Drug Administration (FDA). This is in relation to the company's medical device, the Brain Anaesthesia Response Monitor (BARM).

Touted as the next-generation brain function monitor, BARM is an Australian-first. It has been developed by BPH in partnership with Swinburne University.

BARM works by measuring changes in a patient's brain activity as a medical professional delivers anaesthesia. It allows anaesthetists to calculate the dosage and make adjustments as necessary during surgical procedures.

The monitor also has the potential to indicate how pain-free a patient is while under anaesthesia.

BARM is better than the currently used electroencephalogram (EEG) technology because it is based on science's latest understanding of how the brain produces rhythmic electrical activity.

A 510(k) is a premarket submission that demonstrates that the device is safe and effective for potential consumers. This is considered the fastest route to market. Clearance of the 510(k) would allow Cortical Dynamics to begin marketing a predicate device in the US without clinical trials.

About the BPH share price

Over the past 12 months, BPH shares have lifted by 24%. Year to date, the BPH share price has gained 55%.

Based on today's price, BPH presides a market capitalisation of roughly $41.2 million. There are approximately 665 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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