Palantir Stock Rally Is Eye-Popping. The $44 Million FDA Contract Isn’t.
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Palantir went public in a direct listing on Sept. 30, with an opening price of $10.
Michael Nagle/BloombergPalantir Technologies has signed a three-year contract extension with the Food and Drug Administration worth $44.4 million, the government agency said on Monday.
The contract, which extends a relationship with the FDA that started more than 10 years ago, covers the creation of enterprise data-management and analytics systems for two arms of the FDA: the Center for Drug Evaluation and Research and the Oncology Center of Excellence.
The drug research center ensures that pharmaceuticals are safe and effective for their intended use, meet established quality standards, and are made available to patients in a safe and timely manner. The oncology center facilitates the development and clinical review of cancer-related products.
While the contract is Palantir’s (ticker: PLTR) largest to date with the FDA, the deal hardly seems market-moving, adding about 1% a year to the company’s revenue base. Nonetheless, always volatile Palantir shares had an impressive day.
The data analytics company’s shares jumped 21.3% to $28.94 in the regular session, and were up 4.5% $30.25 in after-hours trading.
Palantir went public in a direct listing on Sept. 30, with an opening price of $10.
Write to Eric J. Savitz at eric.savitz@barrons.com