Varda Space: Silicon Valley Bets on Drug Manufacturing in Space

Overcoming Terrestrial Limitations in Pharmaceutical Production

A significant challenge for pharmaceutical scientists on Earth stems from the effects of gravity. Varda Space is pioneering a solution to this limitation.

The company has secured substantial new funding with the goal of establishing space as an optimal environment for producing vital pharmaceutical components.

Securing Funding for Orbital Manufacturing

Varda Space’s recently announced $187 million Series C funding round will be allocated to the construction of a state-of-the-art laboratory facility.

This facility is designed to refine Varda’s orbital manufacturing processes and transform them into a valuable source of intellectual property.

Advancing Biologic Crystallization Research

Located in El Segundo, California, the 10,000-square-foot laboratory will empower Varda’s scientists to identify the most promising biologics – such as proteins and antibodies – for space-based crystallization.

Essentially, this lab will facilitate preliminary research to determine which compounds are suitable for orbital missions and the optimal conditions for their processing in space, as explained by Varda co-founder Delian Asparouhov.

Optimizing Space-Based Bioreactor Performance

“The ability to conduct process engineering allows us to understand crystallization temperatures and conditions beforehand,” Asparouhov stated. “This ensures the bioreactor operates effectively once in orbit.”

Addressing Pharmaceutical Challenges

Varda is actively collaborating with leading pharmaceutical companies facing difficulties in areas like ingredient crystallization, drug purity, and shelf-life stability.

The company intends to leverage its laboratory and orbital spacecraft to resolve these issues, generating patentable intellectual property that can be licensed to drug manufacturers.

Intellectual Property Generation and Patent Filing

The new laboratory will provide opportunities to create valuable intellectual property throughout the drug production process.

Asparouhov anticipates a significant increase in patent applications as the lab becomes fully operational.

Investment and Key Backers

The funding round was spearheaded by Natural Capital and Shrug Capital, with contributions from Peter Thiel, Lux Capital, Khosla Ventures, and Caffeinated Capital.

Asparouhov’s prior experience includes roles as a partner at Founders Fund (co-founded by Thiel) and as a principal at Khosla Ventures.

Mission Success and Expansion

Since 2023, Varda has successfully launched and returned three missions.

The company plans to complete four missions in the current year alone.

In-House Spacecraft Manufacturing

Initially, Varda utilized Rocket Lab-built spacecraft for its in-space manufacturing module.

However, the company has since brought spacecraft manufacturing entirely in-house, producing two spacecraft this year and aiming to double that output to four next year.

Hypersonic Flight Testing for the Department of Defense

Varda also generates revenue by offering its spacecraft as a hypersonic flight testbed for the U.S. Department of Defense.

This provides a faster and more cost-effective alternative to traditional hypersonic flight testing, with the added benefit of recovering tested materials.