Space Drug Manufacturer Varda Raises $250 Million

Varda Space has raised $250 million to expand its orbital manufacturing business. Its long-term pharmaceutical opportunity is intriguing, but commercial drug production remains at an early stage and the company is privately held.

Varda Space has raised $250 million in a funding round that values the private company at $1.6 billion. The US startup is developing unmanned capsules that can manufacture pharmaceutical products in orbit and return them to Earth.

The round brings Varda’s total funding since 2021 to $598 million. It plans to launch two capsules together for the first time on Thursday.

Drug manufacturing is the longer-term bet

Microgravity may allow some pharmaceutical formulations to be made with properties that are difficult to achieve on Earth. Varda has completed six orbital missions, though one capsule failed to return successfully.

Government customers currently make up much of its business. Varda expects commercial pharmaceutical work to account for a growing share over time, but its chief executive says testing a space-made formulation in a human patient is a milestone still expected around the turn of the decade.

For investors, the funding shows continued interest in the technology while its pharmaceutical business remains at an early stage. Varda is privately held, so there is no Varda stock available to public-market investors.