Palantir Stock Surges on FDA Contract Victory

Data specialist Palantir (NYSE:PLTR) is having a lucky day. This morning, investors learned that the company won a deal with the U.S. Food and Drug Administration. As a result, PLTR stock is up more than 12%. So what do investors need to know here?

A banner for Palantir (PLTR) hangs on the New York Stock Exchange.

Source: rblfmr / Shutterstock.com

According to Bloomberg, Palantir just landed a three-year deal with the FDA that is worth $44.4 million. As part of the arrangement, the Center for Drug Evaluation and Research as well as the Oncology Center of Excellence will rely on Palantir to integrate and analyze data. More specifically, Bloomberg says Palantir will help the FDA approve drugs and monitor product safety. PLTR stock, unsurprisingly, is ticking higher.

Additionally, there is more to the story here for investors to like. Broadly, the FDA has been top of mind in recent months thanks to the novel coronavirus pandemic. This means that for Palantir, its software could help approve Covid-19 treatments. Also, after the FDA reported that some hand sanitizers were toxic, Palantir could help prevent similar incidents.

With the nation battling a deadly pandemic surge, such news from Palantir will certainly win it investor appreciation.

Lastly, this news ties into another recent catalyst for PLTR stock. After landing a series of government and private contracts, Palantir won something very critical. According to the company, it will work with Operation Warp Speed to help vaccinate the U.S. Now, with the FDA victory under its belt, it looks like Palantir has a hand in all things related to fighting the pandemic.

The Bottom Line on PLTR Stock

Palantir stock has been dominating the market in recent weeks, thanks to a series of new contracts and broader political catalysts. As we reported this morning, the company just reaffirmed a deal with the Greek government. In that arrangement, it will help provide a Covid-19 crisis dashboard and aid in data-driven decision-making. While the FDA deal will likely spark more investor interest, it is clear that Palantir has a lot working for it.

Keep a close eye on PLTR stock. With the upcoming inauguration of President-elect Joe Biden, the story for Palantir is one to watch.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com. 


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/palantir-stock-surges-on-fda-contract-victory/.

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