Varda Space Industries has banked $251m in a Series D financing to scale its in-space pharmaceutical processing operations, as the industry increasingly recognises the potential of producing drugs in microgravity conditions.
With cash provided by Lux Capital and Natural Capital, as well as contributions from other players like Kholsa Ventures and the Founders Fund, Varda plans to enhance the frequency and speed at which it can launch and return materials between Earth and orbit, as well as deepen its partnerships with the pharma industry. The company secured this funding, which brings its total capital raised to $598m, as it looks to debut the first space-made medicine on the pharmaceutical market.
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Unlike Earth-based drug processing, manufacturing in space is performed in zero-gravity conditions. By producing medicines in space without the constraints of gravity, Varda proposes that active pharmaceutical ingredients (APIs) can be crystallised in ways that are impossible on Earth – potentially allowing for the market entry of a new swathe of medicines with differential patient benefits.
Thus far, Varda has already had some success in the space, with the company completing its first mission launch in 2023. Since then, the microgravity-led processing company has completed six successful re-entry missions.
With its eyes on further expansion, Varda is also planning more than 12 more launches and re-entries up to 2028, as it looks to become the leading space life sciences company.
“We started Varda with the conviction that the first product manufactured in space and consumed on Earth would be a pharmaceutical,” commented Delian Asparouhov, co-founder and president of Varda.
“This round gives us the resources to increase our cadence, deepen our pharmaceutical partnerships, and get closer to delivering the first medicine made in space,” he added.
Global governments bet on in-orbit medicines manufacturing
Varda secures this capital as space-based drug production garners increasing interest from global governments.
This includes the UK government, which is actively looking to create a favourable regulatory environment for space-manufactured drugs in Britain by debuting a regulatory sandbox focused on re-entry. This is designed to streamline the licensing process for scaled in-orbit operations and facilitate the sector’s growth.
On top of these regulatory shifts, the British government has also financially backed UK-based space biotech startup, BioOrbit, which is currently running feasibility studies focused on crystallising biologics in-orbit to allow for the creation of home-administered cancer therapies.
The Swiss government is also looking to be part of the action, as it recently joined forces with the UK to figure out how best regulators, investors and the government can harmoniously address and overcome current challenges linked to space manufacturing.
