Palantir to Aid FDA in Drug Evaluation - Including COVID-19 Treatments

Palantir is expanding its involvement in governmental health initiatives. The data analytics firm has recently been awarded a new contract from the U.S. Food and Drug Administration, valued at $44.4 million over a three-year period. Following this announcement, the company’s stock price has increased by approximately 20%, having already seen a doubling in value over the past two months.

According to reports from Bloomberg, Palantir will be assisting the FDA in the evaluation of pharmaceutical drugs, including those designed for COVID-19 treatment, and in the assessment of the safety of various health products regulated by the FDA, such as hand sanitizers. Bloomberg also indicates that Palantir’s data analysis software will be implemented within the FDA’s Center for Drug Evaluation and Research and the Oncology Center of Excellence.

Palantir became a publicly traded company in late September through a direct listing, following a period of extensive communication with the SEC regarding its S-1 filing, rather than utilizing a traditional initial public offering. The company, established with Peter Thiel, a prominent figure in Silicon Valley, has faced scrutiny in recent years due to its continued collaboration with ICE, the federal agency responsible for carrying out deportations.

The FDA operates under the umbrella of the U.S. Department of Health and Human Services (HHS), which previously engaged Palantir’s services to support efforts related to the coronavirus crisis. In April, Palantir secured two contracts with HHS, providing software utilized by the White House’s Coronavirus Task Force to monitor trends and inform decisions concerning the pandemic. Furthermore, Palantir collaborated with the CDC to model the progression of the virus as early as mid-March.

It remains uncertain whether the current administration will continue to broaden federal collaborations with Palantir; however, the distribution of vaccines presents a further opportunity for the company to leverage its capabilities. The task of monitoring individuals who have completed their vaccination schedules aligns closely with Palantir’s areas of expertise.

While Palantir significantly depends on contracts with the U.S. federal government, the company also markets its software platforms to international governments. In November, the United Kingdom was evaluating the potential use of Palantir’s software to support contact-tracing initiatives, although the status of these discussions is unclear given the ongoing vaccine rollout.

Palantir’s S-1 filing revealed a client base of only 125, with government contracts contributing to just over half of its total revenue. Although attention frequently centers on Palantir’s domestic partnerships, 60% of its business is conducted internationally, with the identities of many clients remaining undisclosed both within the U.S. and abroad.