Can you explain the concept of 'industrializing' low Earth orbit, and why Varda feels this is a valuable pursuit?
The co-founders of Varda, Delian Asparouhov and Will Bruey both have a profound interest in space exploration. Asparouhov, currently a partner at Founders Fund and President of Varda, aimed to invest in transformative ideas that precede their recognition as distinct categories. His inspiration for industrializing space came from observing SpaceX's advancements, which significantly reduced the costs of accessing low Earth orbit. This observation, coupled with an analysis of the various applications of space technology, led to identifying pharmaceuticals as the prime candidate for leveraging commercial access to low Earth orbit. This approach aims to harness the unique conditions of space to improve pharmaceutical manufacturing, highlighting the potential of space for industry-specific advancements.
Additionally, Merck's discovery of microgravity's potential in pharmaceuticals was spearheaded by researcher Paul Reichert, who explored the effects of microgravity on drug formulation on the International Space Station’s. This research aimed to address the limitations of Earth-based pharmaceutical processes, such as the development of a subcutaneous formulation for the oncology drug Keytruda, which is challenging due to its crystallization properties on Earth. By conducting experiments in microgravity, Merck could overcome these limitations, paving the way for improved drug formulations and accessibility. This breakthrough illustrates the opportunity for companies like Varda to leverage access to space in order to bring tangible benefits back to Earth, particularly in fields like pharmaceutical processing, where traditional methods face significant barriers.
What is the breadth of applications for manufacturing medicines in orbit?
Varda is committed to supporting the entire biopharmaceutical industry, including both small molecules and biologics. The company's current capabilities encompass small molecule melt cool and solvent-based applications, both terrestrially and in flight, with a focus on expanding into biologic-based applications in the future.
This broad spectrum of support is designed to cater to the pharmaceutical industry's diverse needs, ensuring that Varda can contribute to various aspects of drug development and manufacturing.
Can you elaborate on the value proposition of manufacturing in orbit?
The unique conditions of low Earth orbit offer a compelling value proposition for the pharmaceutical industry, where the cost of goods is exceptionally high. Varda’s operational costs for space-based manufacturing are justified by the significant benefits that can be achieved, such as the development of novel drug formulations and the potential to unlock discoveries that are not possible on Earth. The cost of accessing space have come down significantly in recent years, and will continue to decrease, giving pharmaceutical partners a cost-effective opportunity to utilize the unique conditions of microgravity to innovate and improve their products.
Varda’s space capsules are not big at present. Have you considered the problem of scalability?
It is true, the capsules are small – they are about the size of the average household washing machine. Also, because there are no humans on board, the capsules can process more experiments than a human-rated spacecraft, making Varda a more nimble option. The technology and processes used in Varda's capsules are designed with scalability in mind, mirroring the operational principles of terrestrial manufacturing while adapting them for space. This ensures that the transition from Earth-based to space-based manufacturing is seamless and scalable. By utilizing a combination of miniaturization and optimization for power requirements, Varda can replicate terrestrial unit operations in space.
Can you discuss the significance of your company's first successful spacecraft landing?
Varda achieved a significant milestone by being the first commercial spacecraft to land on US soil, distinguishing itself from previous endeavors that concluded with ocean landings. This accomplishment required precise re-entry techniques and coordination with various regulatory bodies, including the FAA, to establish a re-entry license paradigm. Following a $50 million Series A financing, Varda's rapid progression to launch within two and a half years and successful landing, exemplifies the company's pioneering spirit and its contribution to setting a regulatory framework for future space missions.
How do you address intellectual property (IP) rights in collaboration with pharma companies?
Varda operates on a unique intellectual property model that differentiates between platform IP, which includes spacecraft, hardware, and processes, and asset IP brought in by pharmaceutical partners. The collaboration between Varda and its partners respects the ownership of existing asset IP while creating collaboration IP for innovations that emerge from their joint efforts. This model is structured around success-driven milestone and royalty agreements, allowing Varda to license back rights to the collaboration IP to its partners. This approach ensures a balanced and fair distribution of intellectual property rights, fostering a collaborative environment for pharmaceutical innovation.
What significant milestones does Varda anticipate in the near future?
Within the next three months, we are confident in announcing two major pharmaceutical partnerships, which are poised to validate our technology and approach, demonstrating the pharmaceutical industry's recognition of our potential to revolutionize drug development processes with microgravity research.
Does Varda plan to expand its technological applications beyond pharmaceuticals?
Indeed, we envision our technology expanding within and extending beyond pharmaceuticals as space infrastructure matures and launch and reentry costs decrease. Our spacecraft is designed for reusability, which will further reduce operational costs. This economic efficiency opens the door to applications in other high-value sectors, such as semiconductors and fiber optics. Within the pharmaceutical realm, our current focus extends from small molecule and biologic crystallization to broader areas like cellular proliferation and drug discovery, showcasing the vast potential of microgravity in advancing various scientific and industrial fields.
