With Varda Space, leading Silicon Valley players make big bet on making drugs in space

In a groundbreaking move for the pharmaceutical industry, Varda Space is set to challenge the constraints of gravity in drug production. The company recently announced a substantial $187 million Series C funding round aimed at establishing a state-of-the-art laboratory facility designed to harness the unique advantages of space for creating vital pharmaceutical components. Located in El Segundo, California, the new 10,000-square-foot lab will empower Varda's pharmaceutical scientists to identify and develop biologics, such as proteins and antibodies, that are ideal for crystallization in the microgravity environment of space. According to co-founder Delian Asparouhov, this facility will facilitate crucial preparatory work, allowing the team to determine optimal conditions for crystallization before their materials are sent into orbit. Asparouhov emphasized the importance of understanding the specific environmental factors that influence the crystallization of biologics. This knowledge will be invaluable once the materials are launched into space, ensuring that the bioreactor can operate efficiently and effectively. Varda is actively engaging with major pharmaceutical companies that face challenges in crystallizing specific ingredients or maintaining drug purity and shelf-life stability. The company's innovative approach aims to address these issues while simultaneously creating valuable intellectual property that can be patented and licensed to drug manufacturers. With the new funding primarily led by Natural Capital and Shrug Capital, alongside contributions from notable investors such as Peter Thiel and Lux Capital, Varda is poised for significant growth. Asparouhov anticipates a surge in patent filings as the lab begins operations. Since its inception, Varda has successfully completed three missions in 2023, with plans for four additional missions this year. Initially using a Rocket Lab spacecraft for its manufacturing module, Varda has transitioned to producing its own spacecraft, with two already built this year and plans to double that production next year. Additionally, the company has found a revenue stream by offering its spacecraft as a hypersonic flight test platform for the U.S. Department of Defense, providing a more efficient and cost-effective solution for testing hypersonic technologies.