Cash injection will help Varda make drugs in space

A new US start-up, called Varda Space Industries, has raised $187 million in financing for a bold plan to manufacture medicines in orbit.

The El Segundo, California-based start-up is one of a clutch of companies that want to tap into the phenomenon that active pharmaceutical ingredients (APIs) crystallise differently in the microgravity of space than they do on Earth, allowing drug formulations to be created that would otherwise be impossible.

The notion has captured the attention of researchers since MSD showed in a 2019 study that it could use the microgravity environment on the International Space Station (ISS) to create a higher concentration version of its blockbuster cancer immunotherapy Keytruda (pembrolizumab) that was both more stable and suitable for subcutaneous rather than intravenous dosing.

That research paved the way for the development of a subcutaneous version of Keytruda that is under regulatory review in the US and Europe, with a decision by the FDA due by 23rd September.

In 2023, Varda sent a pharma manufacturing capsule into space to test a crystallisation process for HIV therapy ritonavir, a mission known as W-1, and has now completed two more with a fourth – W-4 – currently in orbit and a fifth due to launch before the end of the year.

Its approach revolves around the use of a space capsule containing automated equipment that can carry out multiple experiments on behalf of customers whilst up in space with a high 'cadence' – i.e. frequent launches and re-entries. Along with pharma clients, the company is also working with government research groups on re-entry systems.

The new Series C funding takes the total raised by Varda since it was formed in 2021 to $329 million and was led by Natural Capital and Shrug Capital, with participation from Founders Fund, PayPal co-founder Peter Thiel, Khosla Ventures, Caffeinated Capital, Lux Capital, and Also Capital.

"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," said the company's chief executive Will Bruey.

Proceeds from the funding will help fund an ongoing expansion at Varda in headcount and facilities, which has included the setting up of a new 10,000 sq. ft. laboratory in El Segundo, the opening of an office in Huntsville, Alabama, and new hires, including structural biologists and crystallisation scientists.

"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."