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.
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.
DoorDash is the 'most ridiculous IPO of 2020' and holds no value beyond bailing out private investors, a veteran equities analyst says
These 4 technical indicators are pointing to a roaring stock market in the 1st half of 2021, according to BofA
'Big Short' investor Michael Burry told Elon Musk to cash in Tesla stock, gave up on being as popular as Warren Buffett, and wanted more credit for his housing bet. Here are his 14 best quotes.