The stock remained up more than 20% as of Wednesday morning. Shares closed at $1.52 on Tuesday and opened at $2.26 on Wednesday.
The company received the grant in the first quarter of 2021 to further research for its DARE-LARC1 program, which Daré describes as a "long-acting reversible contraceptive," according to its most recent SEC filing.
Daré will receive an initial $11.5 million this month, and additional payments will be made upon the DARE-LARC1 program's achievements and reporting milestones, according to the agreement published on June 30.
As part of the contract, Daré agreed to make the program and its related initiatives affordable for patients "most in need within developing countries, or in support of the U.S. educational system and public libraries."