- Palantir surged as much as 17% on Monday after a Bloomberg report said the data-mining firm won a three-year contract with the FDA worth $44 million.
- Palantir’s software will help drive the FDA’s drug reviews and inspections, according to the report.
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Palantir surged as much as 17% on Monday following a Bloomberg report that said the data-mining firm won a three-year contract with the US Food and Drug Administration.
The contract is worth $44.4 million, Bloomberg said, adding that it will allow the FDA to utilize Palantir’s software to integrate and analyze data.
Specifically, the software will help the FDA approve drugs and monitor the safety of items like hand sanitizer, Bloomberg said.
The FDA is one of many government agencies that utilize Palantir’s software. In April, Palantir was awarded a $21 million contract with the US Health and Human Services Department, and the company is being utilized in Operation Warp Speed to help drive the distribution of COVID-19 vaccines to the American population.
The contract comes as Palantir stock experiences volatile trades. The company, which debuted to the public via its September IPO, had more than tripled at its late November peak.
But a recent downgrade from Morgan Stanley and bearish comments from famed short-seller Andrew Left of Citron Research fueled a more than 20% sell-off in the stock from its late November peak.
Still, despite the choppy trading, shares of Palantir are up 170% since its September IPO, as of Monday afternoon.
