Space Drugs: From Sci-Fi to Shelf?

Hustler Words – Varda Space Industries is on a mission to normalize space manufacturing, envisioning a future where specialized spacecraft routinely deliver pharmaceuticals made in orbit. CEO Will Bruey believes that within a decade, witnessing these deliveries could become commonplace, akin to observing shooting stars. His ambitious outlook stems from his experience at SpaceX, where he witnessed seemingly futuristic concepts, like reusable rockets, become reality.

Varda has already achieved a significant milestone, becoming only the third private entity to successfully return materials from orbit, joining SpaceX and Boeing. The company retrieved crystals of ritonavir, an HIV medication, manufactured in the unique microgravity environment of space.

The company’s W-1 capsule, about the size of a kitchen trash can, houses the pharmaceutical manufacturing process. These capsules launch aboard SpaceX rideshare missions, utilizing Rocket Lab spacecraft buses for power, communication, and control.

The advantage of space manufacturing lies in the microgravity environment. Without the interference of gravity-related forces, crystal formation can be precisely controlled, resulting in crystals with uniform sizes and novel structures. This translates to drugs with improved stability, purity, and shelf life.

While the manufacturing process can take weeks or months, the return journey is swift. The capsule detaches and plummets through the atmosphere at speeds exceeding Mach 25, protected by a NASA-developed heat shield before landing softly with a parachute.

Bruey emphasizes that Varda is not just a space company, but an "in-space" company. He views space as simply another location for manufacturing, adding a "gravity knob" to the traditional bioreactor or oven.

Varda focuses on improving existing, approved drugs, not discovering new ones. Pharmaceutical companies have already experimented with crystallization on the International Space Station, proving the concept. Varda aims to commercialize this process by creating reliable infrastructure for large-scale production.

Two key factors have made this possible: the increased predictability and availability of space launches, and the emergence of off-the-shelf satellite buses like those from Rocket Lab.

Initially, only high-value products like pharmaceuticals can justify the transportation costs.

Bruey outlines a "seven domino theory" to illustrate Varda’s long-term vision. The first two dominoes, reusable rockets and in-orbit drug manufacturing, have already fallen. The third, getting a space-manufactured drug into clinical trials, is crucial because it establishes a continuous launch cycle.

Unlike satellite companies that launch hardware and then operate with minimal further launches, Varda’s model requires ongoing launches for each drug formulation. This creates predictable, scalable demand for launch providers, justifying infrastructure investments and driving down launch costs.

Domino four involves a positive feedback loop: as Varda scales, costs decrease, making the next tier of drugs economically viable. This cycle will continue to reduce launch costs, benefiting not only Varda but also other industries like semiconductors and fiber optics.

Bruey envisions a future where launch costs are so low that it becomes cheaper to send employees to space for a month than to automate the process further.

Varda’s journey hasn’t been without challenges. The company faced a near-death experience when its first capsule remained stranded in orbit for six months due to regulatory hurdles.

Despite launching with FAA authorization, Varda struggled to secure reentry approval from the Utah Test and Training Range, which prioritized military missions.

After exploring alternatives, Varda decided to push regulatory boundaries and secure a land landing. In February 2024, the W-1 capsule finally returned, marking the first commercial spacecraft landing on a military test range and under the FAA’s Part 450 licensing framework.

Varda now has landing sites in both the U.S. and Australia and is the first company to receive an FAA Part 450 operator license for repeated U.S. reentries.

The company has also developed a secondary business: hypersonic testing. Varda’s capsules reenter the atmosphere at Mach 25, creating extreme conditions that are difficult to replicate on Earth. This provides an opportunity to test materials and equipment for the Air Force and other defense agencies.

Varda has raised $329 million as of its Series C round, using the funds to build its pharmaceutical lab and hire scientists to work on more complex molecules, including biologics.

While Varda’s commercial viability remains to be proven, Bruey believes that space manufacturing is closer than many people think.