Emerging Commercial Space Manufacturing: Varda's Vision

When Will Bruey discusses the future of Varda Space Industries, he envisions a world where multiple specialized spacecraft deliver pharmaceuticals manufactured in space to Earth every night. At the TechCrunch Disrupt event, Bruey forecasted that within ten years, this scenario could become a reality, and within 15 to 20 years, sending a working-class employee to orbit for a month could be cheaper than keeping them on Earth.

Varda has already demonstrated its capabilities by becoming the third corporate entity to successfully return materials from orbit, specifically crystals of ritonavir, an HIV medication, in February 2024.

The company has successfully launched five capsules aboard SpaceX's Falcon 9 rideshare missions. The W-1 capsule, which is about the size of a large kitchen trash can, detaches from a spacecraft bus that provides essential support while in orbit.

The unique microgravity environment allows for precise control over crystallization, producing drugs with improved stability and purity. Despite the lengthy manufacturing process, Varda's approach is focused on commercializing existing drugs rather than discovering new ones.

The pharmaceutical industry has been exploring crystallization in space for years, and Varda aims to develop the infrastructure needed for reliable, repeatable, large-scale production. Bruey attributes the timing of Varda's advancements to the increased reliability of space launches and the availability of end-to-end space service companies like Rocket Lab.

Each manufacturing run requires a launch, introducing a perpetual demand that could drive down launch costs significantly due to economies of scale. Varda's business model is fundamentally different from traditional space companies, as it relies on constant launches rather than a fixed number for satellite constellations.

The path to commercial viability faced challenges, including a six-month wait for approval to bring its first capsule back to Earth. Varda eventually succeeded in landing the W-1 capsule at the Utah Test and Training Range, marking a milestone as the first commercial spacecraft to land on U.S. soil under the FAA's Part 450 licensing framework.

Varda has also ventured into hypersonic testing, offering a unique alternative for defense agencies needing to test equipment in extreme conditions. The company raised $329 million in its Series C round in July 2023, with plans to expand its pharmaceutical lab in El Segundo.

Varda is also hiring experts to work on more complex drug formulations, targeting the lucrative biologics market, which is valued at $210 billion. Bruey believes that the potential for space manufacturing could revolutionize the pharmaceutical industry and beyond, making access to space more affordable and commonplace.