Varda raises $187M Series C for drug manufacturing in space

Varda Space Industries recently announced a $187 million fundraise, bringing the total amount of money raised to $329 million for the El Segundo, California–based startup.

Natural Capital and Shrug Capital led the Series C round, with participation from Founders Fund, Peter Thiel, Khosla Ventures, Caffeinated Capital, Lux Capital, and Also Capital.

Varda Space Industries’ goal is space-based manufacturing of medicines. It is building infrastructure to support manufacturing in microgravity and test hypersonic reentry technologies.

Since its first mission, W-1, in 2023, Varda has completed three successful launch and return missions. A fourth, W-4,  is presently in orbit, with a fifth expected to launch before the end of the year.

Varda’s orbital laboratories are the first to process materials outside the International Space Station. The lack of gravity means that materials such as the active pharmaceutical ingredients in medicines crystallize differently than they would on Earth. The result is novel drug formulations that would otherwise be impossible.

“With this capital, Varda will continue to increase our flight cadence and build out the pharmaceutical lab that will deliver the world’s first microgravity-enabled drug formulation,” Varda CEO Will Bruey said in a July 10 news release.

Varda has expanded on the ground as well, opening an office in Huntsville, Alabama, and a new 10,000-square-foot laboratory space in El Segundo, which will enable its pharmaceutical scientists to begin developing processes for crystallizing biologics, such as monoclonal antibodies. As of 2022, the market size for monoclonal antibodies is estimated to be $210.06 billion.

“Our new lab space is an investment in our belief that in-space pharmaceutical manufacturing will drive the foundation of the orbital economy,” said Chief Science Officer Adrian Radocea. “By expanding, we can support work on more complex molecules and ultimately increase cadence to achieve the turnaround times the pharmaceutical industry expects.”