Varda Space Factory: Making Space Manufacturing Routine

The Future of Space Manufacturing: Varda's Vision

Will Bruey envisions a future where space access is dramatically accelerated. He anticipates that within a decade, observers at landing sites will witness a nightly spectacle of specialized spacecraft descending towards Earth, each delivering pharmaceuticals created in orbit. Furthermore, he predicts that within 15 to 20 years, sending a worker to orbit for a month will be less expensive than maintaining them on Earth.

Experience at SpaceX Fuels Optimism

Bruey’s confidence stems from his prior experience as an engineer at SpaceX, where he observed ambitious business projections become reality. He recalls working on the third flight of the Falcon 9 launch vehicle, which has since achieved nearly 600 successful missions.

A Parallel to Falcon 9's Early Days

At a recent TechCrunch event, Bruey reflected on the initial skepticism surrounding reusable rockets. He stated that if someone had predicted the frequency of Falcon 9 flights comparable to those out of LAX, he would have estimated a timeframe of 15 to 20 years. He believes the current potential of in-space manufacturing feels similarly futuristic.

Varda's Proof of Concept

Varda Space Industries has already demonstrated the feasibility of its core concept. In February 2024, the company successfully retrieved crystals of ritonavir, an HIV medication, from orbit – becoming only the third corporate entity, alongside SpaceX and Boeing, to achieve this milestone after a lengthy regulatory process.

The W-1 Capsule: A Mobile Pharmaceutical Lab

Varda utilizes the W-1 capsule, a small, conical spacecraft measuring approximately 90 centimeters in diameter and 74 centimeters in height, with a weight of under 90 kilograms. This capsule, comparable in size to a large kitchen trash can, returns pharmaceuticals to Earth. The company recently launched another capsule via a SpaceX ride-share mission, utilizing a spacecraft bus for power, communications, propulsion, and control during its orbital phase.

The Advantages of Microgravity for Crystallization

Manufacturing crystals in space offers unique advantages. The absence of gravity eliminates forces that disrupt crystal formation on Earth, such as sedimentation and gravitational pull. This allows for more precise control over crystallization, potentially yielding crystals with uniform sizes or novel structural arrangements – known as polymorphs.

Improved Drug Characteristics

These improvements can lead to enhanced drug stability, greater purity, and extended shelf life. While the manufacturing process can take weeks or months, the capsule’s return involves a high-speed atmospheric reentry exceeding 30,000 kilometers per hour, surpassing Mach 25, protected by a NASA-developed carbon ablator heat shield and a parachute for a gentle landing.

A Focus on Formulation, Not Discovery

Bruey emphasizes that Varda’s business model is straightforward: “We just have this magic oven… where you can create formulations that you otherwise couldn’t.” He clarifies that Varda is not a space industry company, but rather an “in-space industry” company, viewing space as simply another destination for shipping.

Expanding Existing Drug Capabilities

Varda is not focused on discovering new drugs or molecules; instead, it aims to broaden the possibilities for existing, approved pharmaceuticals.

Building on Existing Research

This concept isn’t purely theoretical. Companies like Bristol Myers Squibb and Merck have been conducting pharmaceutical crystallization experiments on the International Space Station for years, validating the underlying principle. Varda intends to commercialize this process by establishing the infrastructure for repeated, reliable, and scalable manufacturing.

Factors Enabling Current Progress

Two key developments have facilitated Varda’s progress. First, space launches have become more predictable and readily available. Second, companies like Rocket Lab now offer off-the-shelf satellite buses, allowing Varda to integrate its pharmaceutical manufacturing capsules with existing spacecraft.

Economic Viability and High-Value Products

Economic feasibility is contingent on the value of the product. Varda began with pharmaceuticals because drugs commanding high prices per dose can absorb transportation costs.

The "Seven Domino" Theory

Bruey frequently presents the “seven domino” theory to members of Congress. The first domino, reusable rockets, has already fallen. The second, manufacturing drugs in orbit and returning them, is now a reality. The third, and most significant, is securing clinical trials for a space-manufactured drug, which would ensure continuous launch demand.

A Shift in Launch Economics

Varda’s model differs fundamentally from traditional satellite companies. While satellite constellations require initial launches for deployment, Varda’s manufacturing process necessitates ongoing launches for each drug formulation. This creates a sustained demand for launch services, altering the economics for launch providers.

A Virtuous Cycle of Cost Reduction

As Varda scales, costs will decrease, making additional drugs economically viable. This increased demand will further lower costs, creating a cycle that Bruey believes will “shove launch costs into the ground.”

Beyond Pharmaceuticals: Broader Implications

While Varda’s commercial viability remains to be fully proven, the benefits extend beyond the company itself. Lower launch costs will make space accessible to other industries, including semiconductors, fiber optics, and exotic materials – all of which benefit from microgravity.

The Future of Work in Space

Bruey envisions a future where launch costs are so low that it becomes more economical to send an employee to orbit for a month than to automate the manufacturing process. He imagines a scenario where a worker spends a month at a space-based drug factory, generating more value than the cost of their orbital journey.

The Invisible Hand of the Market

At that point, Bruey believes, “the invisible hand of the free market economy lifts us off our home planet.”

A Near-Disaster and Regulatory Hurdles

Varda’s journey faced a critical challenge when its first capsule, W-1, launched in June 2023, remained in orbit for six months due to difficulties in obtaining reentry approval.

Navigating Complex Regulations

The Utah Test and Training Range, prioritizing military missions, repeatedly delayed Varda’s landing windows, invalidating its FAA reentry license. The company faced a precarious situation, with 80 employees having invested years of work into the mission.

Pioneering Commercial Reentry

Despite initial perceptions of recklessness, Bruey explained that the FAA had encouraged the launch with the understanding that the reentry license would be coordinated while in orbit. The core issue was the lack of a defined process for commercial land reentry, with both the range and the FAA hesitant to assume full liability.

Persistence and Innovation

Varda explored alternative landing options, including water landings, but ultimately decided to persevere and establish a clear regulatory pathway. While W-1 remained stranded, the company continued production on its next capsule and maintained its hiring efforts.

A Landmark Landing

In February 2024, W-1 finally returned to Earth, landing at the Utah Test and Training Range – marking the first commercial spacecraft landing on a military test range and the first under the FAA’s Part 450 framework. Varda now has landing sites in both the U.S. and Australia and holds the first FAA Part 450 operator license allowing reentry without resubmitting full safety documentation for each flight.

A New Revenue Stream: Hypersonic Testing

The challenges faced during W-1’s reentry led to an unexpected opportunity: hypersonic testing. Few objects experience the extreme conditions of Mach 25 reentry, providing a unique environment for testing materials, sensors, and equipment.

Providing a Unique Testing Environment

Varda now offers its W-1 capsules as a platform for hypersonic testing, allowing the Air Force and other defense agencies to validate technologies in real-world conditions at a fraction of the cost of dedicated test flights.

Investor Confidence and Future Growth

Investors have shown strong support for Varda’s vision, with the company raising $329 million as of its Series C round in July. These funds will be used to expand Varda’s pharmaceutical lab and hire structural biologists and crystallization scientists to work on more complex molecules, including biologics.

A Promising Future

While significant challenges remain, Varda’s innovative approach and the evolving landscape of space access suggest a future where in-space manufacturing becomes a reality, potentially transforming industries and expanding humanity’s reach beyond Earth.