Vedanta Biosciences Faces Setback in Ulcerative Colitis Trial, Announces Workforce Reduction

Vedanta Biosciences, a prominent player in the microbiome therapeutics space, has reported disappointing results from its Phase II clinical trial for VE202, an investigational bacterial consortium candidate for ulcerative colitis. The company has subsequently announced a significant workforce reduction as it realigns its focus on other pipeline candidates.

Phase II Stumble and Workforce Impact

The mid-stage COLLECTiVE202 study failed to demonstrate significant improvements in endoscopic and clinical response following VE202 treatment in patients with ulcerative colitis. As a result, Vedanta is parting ways with 23 employees, representing approximately 20% of its total headcount.

Bernat Olle, CEO of Vedanta Biosciences, addressed the situation in a LinkedIn post, stating, "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 described the day of the announcement as "difficult," particularly due to the need to inform employees of the job cuts in one-on-one meetings.

Refocusing on Key Pipeline Assets

Despite the setback with VE202, Vedanta remains committed to advancing its other microbiome-based candidates. The company's lead pipeline asset, VE303, is currently in Phase III development for recurrent Clostridioides difficile infection (CDI).

VE303, an oral drug candidate comprising eight strains of commensal bacteria, has shown promising results in earlier studies. Phase II data published in the Journal of the American Medical Association in 2023 demonstrated that VE303 could reduce the risk of CDI recurrence by over 80% compared to placebo. Additionally, a follow-on analysis published in Nature Medicine in January 2025 revealed that VE303 helps restore a healthy gut microbial community, reducing inflammation and increasing protective metabolites to prevent recurrent CDI.

Vedanta is also progressing with VE707, a preclinical candidate targeting Gram-negative infections, including those involving resistant strains. The company anticipates submitting an investigational new drug application for VE707 in the first half of 2026.

Industry Context and Future Outlook

Vedanta Biosciences, created by PureTech Health, is part of a broader ecosystem of innovative biotech companies. PureTech Health's drug discovery engine has led to three product approvals, and its portfolio includes other successful entities such as Karuna Therapeutics, which was acquired by Bristol Myers Squibb for $14 billion in December 2023.

As Vedanta navigates this challenging period, the company continues to evaluate bacterial colonization outcomes, histological findings, and immune responses from the VE202 study. These results are expected to be shared at upcoming scientific meetings, potentially offering further insights into the complexities of microbiome-based therapies for inflammatory bowel diseases.