Varda claims it has demonstrated that manufacturing in space is feasible — now its goal is to make the process routine.
Varda Space Industries: Pioneering the Future of Space-Based Manufacturing
Will Bruey, CEO of Varda Space Industries, envisions a future that’s closer than many might expect. He predicts that within a decade, people could witness multiple specialized spacecraft streaking through the night sky, each returning to Earth with pharmaceuticals produced in orbit. Looking a bit further ahead—15 to 20 years—he believes it may become more affordable to send a worker into space for a month than to keep them on the ground.
Bruey’s optimism is rooted in his experience at SpaceX, where he saw bold business goals become reality. Reflecting on his early days working on the Falcon 9’s third flight, he recalls how the idea of reusable rockets and daily launches once seemed far-fetched—yet today, Falcon 9 has achieved nearly 600 successful missions. The rapid progress in space technology gives him confidence that Varda’s vision is achievable.
Proving the Concept: Pharmaceuticals from Orbit
Varda has already demonstrated its core idea. In February 2024, after navigating a complex regulatory landscape, the company became just the third private entity—alongside SpaceX and Boeing—to return material from space: ritonavir crystals, a medication used to treat HIV. Since then, Varda has completed several more missions.
The company’s pharmaceuticals are brought back to Earth inside the W-1 capsule, a compact, cone-shaped spacecraft measuring about 90 centimeters wide and 74 centimeters tall, and weighing under 90 kilograms—roughly the size of a large kitchen trash bin. Recently, Varda launched its fifth capsule on a SpaceX rideshare mission, utilizing a spacecraft bus that supplies power, propulsion, and communications in orbit.
Why Manufacture in Microgravity?
Producing crystals in space offers unique advantages. In microgravity, forces like sedimentation and gravity—which disrupt crystal growth on Earth—are virtually absent. This environment allows Varda to precisely control crystallization, resulting in crystals with consistent sizes or entirely new structural forms. These improvements can lead to drugs that are purer, more stable, and have longer shelf lives.
The process is not fast—manufacturing pharmaceuticals in orbit can take weeks or months. When production is finished, the capsule separates from its host spacecraft and reenters Earth’s atmosphere at speeds exceeding 30,000 kilometers per hour (over Mach 25). A heat shield developed by NASA protects the payload, and a parachute ensures a gentle landing.
Space as a Manufacturing Platform
Despite the high-tech setting, Bruey describes the business in simple terms: “Imagine a magical oven where you can create formulations impossible to make elsewhere.” He emphasizes that Varda isn’t part of the traditional space industry, but rather an “in-space industry”—with space serving as just another destination for shipping goods.
It’s important to note that Varda isn’t inventing new drugs or molecules. Instead, the company is expanding what’s possible with existing, approved pharmaceuticals.
From Experiment to Commercialization
Space-based pharmaceutical crystallization is not a new idea. Companies like Bristol Myers Squibb and Merck have conducted similar experiments on the International Space Station for years. Varda’s innovation lies in commercializing the process—building the infrastructure to perform these operations reliably, repeatedly, and at a scale that could transform the pharmaceutical sector.
Why Now? The Changing Landscape of Space Access
Two major shifts have made Varda’s business model feasible. First, space launches have become more predictable and accessible. “A decade ago, getting to orbit was like hitchhiking—you needed a chartered flight unless you were the main payload,” Bruey explains. Today, launches can be scheduled years in advance, making planning much easier, even if costs remain high.
Second, companies like Rocket Lab now offer ready-made satellite buses, allowing Varda to integrate its manufacturing capsules without building entire spacecraft from scratch. This off-the-shelf approach has been a game-changer.
For now, only high-value products like pharmaceuticals make economic sense for space manufacturing, as their high price per dose can absorb the cost of space transport.
The “Seven Domino” Strategy
Bruey often shares his “seven domino theory” with lawmakers:
- Domino 1: Achieve reusable rockets—already accomplished.
- Domino 2: Manufacture and return drugs from orbit.
- Domino 3: Get a space-manufactured drug into clinical trials, which would require continuous launches.
This approach sets Varda apart from traditional space companies. While satellite operators like SiriusXM or Starlink launch hardware once and then operate their networks, Varda’s business depends on repeated manufacturing runs—each requiring a new launch. As demand for space-made drugs grows, so does the need for launches.
This model benefits launch providers by creating ongoing, scalable demand, which helps spread out infrastructure costs and reduce launch prices over time.
As Varda scales up, costs are expected to fall, making it viable to manufacture a wider range of drugs in space. This positive feedback loop could eventually drive launch prices down for other industries as well, such as semiconductors, fiber optics, and advanced materials—fields that could benefit from microgravity but currently find the costs prohibitive.
Bruey foresees a future where sending a worker to space for a month is more cost-effective than automating certain tasks. He imagines a scenario where someone spends a month working in a space-based drug factory, returning to Earth having generated more value than the cost of their trip—a tipping point for the economics of space industry.
At that stage, Bruey believes, market forces will propel humanity beyond Earth.
Overcoming Regulatory Hurdles: A Near-Miss
The journey to this future nearly ended before it began. Varda’s first W-1 capsule, launched in June 2023, successfully produced a challenging form of ritonavir in orbit. However, the capsule remained stranded for six months—not due to technical issues, but because regulatory approval for reentry was delayed.
The intended landing site, the Utah Test and Training Range, prioritizes military activities over commercial operations. Each time military needs took precedence, Varda’s landing window was postponed, invalidating its FAA reentry license and forcing the company to restart the approval process.
Bruey recalls the uncertainty as the team waited, unsure if their hard work would ever return to Earth. While some observers criticized Varda for launching without full approvals, the FAA had actually encouraged the company to proceed, aiming to foster the emerging commercial reentry sector. The agency allowed the launch with the understanding that licensing and reentry coordination would continue while the capsule was in orbit.
The real challenge was the lack of precedent—this was the first commercial land reentry attempt, and there was no established process for coordination between the FAA and the military range. Both parties were concerned about liability.
Varda considered alternatives, such as water landings (which would risk losing the capsule) or landing in Australia, but ultimately decided to push forward and resolve the regulatory issues head-on. The company continued developing its next capsule and hiring new staff while waiting for a solution.
After eight months, in February 2024, W-1 finally landed 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 new Part 450 licensing framework. Varda now has landing sites in both the U.S. and Australia and holds a license that streamlines future reentries.
Expanding Horizons: Hypersonic Testing
Out of necessity, Varda has also developed a secondary business: hypersonic testing. Few objects travel through the atmosphere at Mach 25, where extreme temperatures and plasma sheaths create conditions impossible to replicate on Earth. Defense agencies need to test materials and equipment in these environments, but traditional test flights are prohibitively expensive and risky.
Varda’s capsules, already reentering at hypersonic speeds, provide a unique opportunity to embed sensors and test new technologies in real flight conditions. The company has already conducted experiments for the Air Force Research Laboratory, including in-situ measurements of the shock layer during reentry.
Looking Ahead: Investment and Ambition
Varda’s story has attracted significant investor interest, raising $329 million in its Series C round, much of which is dedicated to expanding its pharmaceutical lab in El Segundo. The company is recruiting experts in structural biology and crystallization to tackle more complex molecules, including biologics—a market worth over $200 billion.
There are still many challenges ahead before Varda can make a significant impact in its target markets. However, if Bruey’s predictions hold true, the future he describes may arrive much sooner than most expect.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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