Why Did Kaleido Shares Plunge 10% On Tuesday?

Kaleido Biosciences Inc KLDO announced topline data from the non-IND/CTA clinical study evaluating KB295, a novel Microbiome Metabolic Therapy (MMT), in mild-to-moderate ulcerative colitis (UC).
The study achieved the primary objective of safety and tolerability with no product-emergent serious adverse events reported.
Subjects receiving KB295 experienced a reduction in three biomarkers, fecal calprotectin (FCP), fecal lactoferrin, and FimH, associated with UC disease activity was observed at the end of the study.
These results are complemented by preclinical studies using human donor-derived microbiome communities.
Total short-chain fatty acid (SCFA) production increased in ex-vivo studies to pharmacologically relevant levels to UC.
The Company plans to initiate a phase 2 study with KB295 for mild-to-moderate UC patients in 1H of 2022.
Price Action: KLDO stock closed 9.62% lower at $5.26 on Tuesday.