Varda Space Industries is pushing toward a future where manufacturing in orbit isn’t just possible, but predictable and economically viable. CEO Will Bruey envisions a scenario within a decade where specialized spacecraft regularly descend from orbit, delivering manufactured pharmaceuticals like shooting stars. Within 15–20 years, he claims, it could be cheaper to send a worker into orbit for a month than to keep them on Earth. This isn’t science fiction; Varda has already demonstrated the core concept, becoming only the third commercial entity to successfully retrieve materials from space, joining SpaceX and Boeing.
The Core Concept: Manufacturing in Microgravity
The advantage of manufacturing in space lies in microgravity. On Earth, forces like sedimentation interfere with precise crystal formation. In orbit, these forces disappear, giving Varda precise control over crystallization, leading to superior drug purity, stability, and shelf life. While the process isn’t fast — pharmaceutical manufacturing can take weeks or months in orbit — the potential benefits justify the time investment.
Varda’s W-1 capsule, a small conical spacecraft, brings the finished products back to Earth. It detaches from a host spacecraft and plunges through the atmosphere at Mach 25, protected by a heat shield made of NASA-developed materials, before deploying a parachute for a soft landing.
From Proof of Concept to Scalable Business
The company isn’t inventing new drugs; it’s refining existing ones. Bristol Myers Squibb and Merck have already conducted pharmaceutical crystallization experiments on the ISS, proving the feasibility. Varda is focused on building the infrastructure for reliable, repeated manufacturing at a commercial scale.
The turning point has been the predictability of space launches. Unlike the past, when access to orbit required “hitchhiking,” launches are now bookable and dependable. Combined with off-the-shelf spacecraft buses from companies like Rocket Lab, Varda can integrate its manufacturing capsules into readily available infrastructure.
The “Seven Domino” Theory: Perpetual Launch Demand
Varda’s business model differs from traditional satellite operators. SiriusXM, DirecTV, and even Starlink build constellations that require an initial investment in launches but don’t need constant replenishment. Varda, however, creates a demand loop: manufacturing requires launches, and increased demand for drugs means more launches.
This scalability benefits launch providers by creating predictable, growing demand, which drives down per-launch costs. Bruey outlines the “seven domino” theory: reusable rockets (done), in-space manufacturing (proven), clinical trials (next step), a feedback loop of scaling and cost reduction, economic viability for more drugs, and ultimately, a cost-effective incentive to send workers into orbit for manufacturing.
Regulatory Hurdles and Hypersonic Testing
Varda’s early success wasn’t without challenges. Its first capsule launched in 2023 but remained stranded in orbit for six months due to regulatory delays. The Utah Test and Training Range, designed for military testing, wasn’t equipped to prioritize commercial reentry. Varda persevered, pushing the boundaries of regulation until the FAA granted it the first Part 450 operator license, allowing repeated reentry without full resubmission of safety documentation.
This experience led to a secondary business: hypersonic testing. Few environments replicate the extreme conditions of Mach 25 atmospheric reentry. Varda now offers its capsules as a platform for the Air Force Research Laboratory and other agencies to test materials, sensors, and equipment in real-world conditions at a fraction of the cost of dedicated test flights.
Funding and Future Outlook
Investors are backing Varda’s vision. The company has raised $329 million, earmarked for expanding its pharmaceutical lab and hiring structural biologists and crystallization scientists to work on more complex molecules, including biologics like monoclonal antibodies.
While significant hurdles remain, Varda’s trajectory suggests that space manufacturing is moving beyond the realm of speculation. If Bruey’s predictions hold true, the future of pharmaceutical production may well be in orbit, reshaping not just the space industry but the economics of manufacturing itself.
