US startup Varda raises $187 million to make drugs in space
Due to the lack of gravity, materials such as the active pharmaceutical ingredients in medicines crystallize differently than they would on Earth, creating novel drug formulations that would otherwise be impossible.
US startup Varda Space Industries has announced that it has secured USD 187 million in a Series C fundraising round, bringing the total amount of capital raised by the microgravity-enabled life sciences company to USD 329 million.
The latest fundraise was led by Natural Capital and Shrug Capital, with participation from Founders Fund, Peter Thiel, Khosla Ventures, Caffeinated Capital, Lux Capital, and Also Capital.
Since launching their first mission, W-1, in 2023, Varda has completed three successful launch and return missions, with a fourth, W-4, currently in orbit and a fifth expected to launch before the end of the year, the company said in a media release.
Varda’s orbital laboratories are the first to process materials outside the International Space Station and mark the beginnings of commercial expansion into low Earth orbit. Due to the lack of gravity, materials such as the active pharmaceutical ingredients in medicines crystallize differently than they would on Earth, creating novel drug formulations that would otherwise be impossible, Varda said.
In addition to its core competencies in the life sciences, Varda operates a hypersonic testbed for government partners, working to utilize the W-series reentry vehicle to advance new technologies.
“[W]hat this series C allows us to do is two big things. First is increase cadence, meaning more flights more often, so the rate of flying,” Varda CEO Will Bruey told CNBC’s Morgan Brennan for the Manifest Space podcast. “And also allows us to build out our biologics lab, which is our way of determining which drug molecules make sense to send a microgravity through a bunch of testing on the ground and then preparing that formulation for flight.”
Varda’s pharmaceuticals team that will work at the new lab in El Segundo includes structural biologists and crystallization scientists, the media release said.
“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.”
“Through multiple flights, the Varda team has proven a repeatable orbital-reentry capability, attracted serious DoD demand, and is now turning that momentum toward a world-class crystallization lab that will unlock microgravity manufacturing for life-changing medicines and other high-value materials,” said Ravi Tanuku, General Partner at Natural Capital and a member of the Varda Board of Directors. “We’re excited to support Varda as it turns this bold vision into reality.”