Varda Aims to Make Space Manufacturing Routine

Varda Space Industries has announced significant progress in making space manufacturing routine, with ambitions to produce pharmaceuticals in microgravity. CEO Will Bruey envisions a future where, within ten years, multiple specialized spacecraft will return to Earth nightly, delivering drugs made in space.

The company successfully demonstrated this concept in February 2024 when it became only the third corporate entity, following SpaceX and Boeing, to return products from orbit, bringing back ritonavir crystals, an HIV medication.

Varda's W-1 capsule, measuring 90 centimeters across and 74 centimeters high, has completed five missions, utilizing the unique conditions of microgravity to create more stable and pure drug formulations.

Manufacturing drugs in orbit takes weeks to months, but Varda's process allows for precise control over crystallization, leading to potentially better pharmaceuticals. Bruey emphasizes that Varda operates in the 'in-space industry,' aiming to expand the capabilities of existing drugs rather than discovering new ones.

The company's approach is built on two key developments: the growing reliability of space launches and the availability of off-the-shelf satellite buses from companies like Rocket Lab. Currently, Varda's business model focuses on high-value products, as only drugs commanding thousands of dollars per dose can offset transportation costs.

Bruey explains the 'seven domino theory' to Congress, whereby the first domino, reusable rockets, is already achieved, and the second domino is manufacturing drugs in orbit. The third domino is critical: getting a drug into clinical trials, which could generate a perpetual demand for launches.

This model contrasts with traditional satellite companies, as Varda's manufacturing runs necessitate multiple launches, creating a feedback loop that could drive down launch costs. Varda's early struggles with regulatory hurdles were highlighted when its W-1 capsule remained in orbit for six months due to landing approval delays.

However, after securing the necessary permits, Varda successfully landed its capsule in February 2024, marking a historical milestone as the first commercial spacecraft to land on a military test range under the FAA's new licensing framework.

Varda has also diversified its operations into hypersonic testing, leveraging its capsules to provide valuable data for defense agencies. With a recent $329 million raised in their Series C funding round, Varda is poised to expand its pharmaceutical lab in El Segundo and hire specialists to explore more complex molecules.

The company's potential to revolutionize drug manufacturing in space could impact not only the pharmaceutical industry but also lower launch costs for various sectors, creating new opportunities in space.