Vedanta Biosciences Downsizes Following Phase II Setback in Ulcerative Colitis
Vedanta Biosciences, a microbiome-focused biotechnology company, has announced a significant workforce reduction following disappointing results from a Phase II clinical trial. The study, which evaluated the company's investigational bacterial consortium candidate VE202 in patients with ulcerative colitis, failed to demonstrate significant improvements in endoscopic and clinical response rates.
Workforce Reduction and Clinical Trial Results
Bernat Olle, CEO of Vedanta Biosciences, described Thursday as a "difficult" day for the company in a LinkedIn post. The Phase II COLLECTiVE202 study's underwhelming outcomes have led to a 20% reduction in the company's workforce, affecting 23 employees.
"Drug development rarely follows a straight path. You can do the right science, run the right study, and still be humbled by the complexities of human biology," Olle stated on LinkedIn.
While specific data from the trial were not disclosed in the company's press announcement, Vedanta continues to evaluate bacterial colonization outcomes, histological findings, and immune responses. These results are expected to be shared at upcoming scientific meetings.
Pipeline Focus and Ongoing Development
Despite the setback with VE202, Vedanta remains committed to advancing its other microbiome-based candidates. The company's pipeline is now focused on two key programs:
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VE303: An oral drug candidate comprising eight strains of commensal bacteria, currently in Phase III development for recurrent Clostridioides difficile infection (CDI). Phase II data published in 2023 in the Journal of the American Medical Association showed that VE303 could reduce the risk of CDI recurrence by over 80% compared to placebo. A follow-on analysis published in Nature Medicine in January 2025 demonstrated VE303's ability to restore a healthy gut microbial community, reduce inflammation, and increase protective metabolites.
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VE707: A preclinical candidate targeting Gram-negative infections, including those involving resistant strains. VE707 aims to decolonize pathologic Gram-negative bacteria such as Klebsiella pneumoniae and Escherichia coli. Vedanta expects to submit an investigational new drug application for VE707 in the first half of 2026.
The company is currently enrolling patients in the RESTORATiVE303 registrational trial for VE303, highlighting its continued commitment to advancing its lead candidate despite the recent setback.
References
- Vedanta Downsizes by 20% After Phase II Stumble in Ulcerative Colitis
Vedanta is parting ways with 23 employees, or approximately 20% of its headcount, after Phase II data for microbiome therapy VE202 failed to demonstrate significant response rates in patients with ulcerative colitis.
Explore Further
What are the main reasons for the Phase II trial setback of the VE202 drug in ulcerative colitis?
What clinical data is available or expected for the microbiome-based candidate VE303 in its Phase III development?
Who are the major competitors for Vedanta Biosciences in the microbiome-based therapeutic market?
What are the expected market impacts and projected sales for VE303 if it successfully completes Phase III trials?
What are the anticipated challenges in advancing VE707 to IND submission given the complexities of targeting Gram-negative infections?