Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Palantir Wins $44 Million FDA Contract for Drug Review Technology

By Eric Volkman - Dec 7, 2020 at 6:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's not the first time the assertive company has inked a services deal with a federal healthcare agency.

Palantir Technologies ( PLTR -1.28% ) has secured an important new business partner in the public sector. On Monday, it was reported that the company has signed a deal with the Food and Drug Administration (FDA) to provide data integration and analysis services for the healthcare regulator. The contract is in force for three years, and is worth a total of $44.4 million.

Palantir, a data-mining company that has been a very hot stock since it debuted on the exchange in September, aggressively chases public-sector clients. Its government work now comprises over half its revenue.

Doctor in lab coat using a laptop, with stethoscope in the foreground on the table.

Image source: Getty Images.

It's also no stranger to dealing with federal healthcare agencies. The FDA news comes not long after the company signed a set of contracts in April with the Department of Health and Human Services to participate in that agency's data collection and analysis efforts. The government has also tasked Palantir with developing a system to track the production and distribution of coronavirus vaccines. 

The company's ability to win both government and private-sector business is evident in its results. Last month it published its first set of quarterly results, which revealed that in Q3 of fiscal 2020 it grew its revenue by 52% on a year-over-year basis to over $289 million. As a company that's fairly young and still on a growth path, however, it is currently operating deeply in the red. It booked a net loss of more than $853 million for the period.

On Monday, its stock did very well, rising by over 21% while the S&P 500 index slumped on the day.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Palantir Technologies Inc. Stock Quote
Palantir Technologies Inc.
$20.80 (-1.28%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.