8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

______________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

_______________________

Date of Report:  November 6, 2008 (Date of earliest event reported)

ORTHOLOGIC CORP. (Exact name of registrant as specified in its charter)

Delaware	000-21214	86-0585310
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1275 West Washington Street, Tempe, Arizona	85281
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(602) 286-5520

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On November 6, 2008, OrthoLogic Corp. announced by press release its financial results for the three and nine months ended September 30, 2008.  A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in Item 2.02 of this Form 8-K and the exhibit furnished herewith shall not be deemed “filed” for purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description

99.1 Press release dated November 6, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:  November 6, 2008	ORTHOLOGIC CORP.
	/s/ John M. Holliman, III
	John M. Holliman, III
	Executive Chairman

EX-99.1

Exhibit 99.1

1275 West Washington Street - Suite 101 Tempe, AZ 85281 (602) 286-5520 www.capstonethx.com Nasdaq: CAPS

FOR FURTHER INFORMATION:

Karen Struck, Investor Relations Lauren Glaser – The Trout Group

(602) 286-5250 (415) 392-3310

kstruck@capstonethx.com lglaser@troutgroup.com

CAPSTONE THERAPEUTICS ANNOUNCES THIRD QUARTER 2008 FINANCIAL RESULTS

TEMPE, AZ – November 6, 2008 – Capstone Therapeutics (NASDAQ: CAPS), trade name of OrthoLogic Corp. (the “Company”), today announced financial results for the third quarter 2008.

The Company reported a net loss of $3.1 million, or $0.08 per share, for the third quarter 2008, compared to a net loss of $2.4 million or $0.06 per share for the third quarter 2007.  For the nine months ended September 30, 2008 the net loss was $8.6 million, or $0.21 per share, versus a net loss of $7.7 million, or $0.18 per share, for the nine months ended September 30, 2007.

The increase in the net loss for the nine months ended September 30, 2008 compared to the same period in 2007 resulted primarily from costs related to the Company’s AZX100 Phase 1 clinical trials in dermal scarring in 2008, reduced interest income due to declining interest rates between the two periods and a reduction in the amount available for investment, partially offset by lower general and administrative expenses due to general cost containment efforts and reduced AZX100 pre-clinical costs related to the filing of an IND for a dermal scarring indication, which was completed as of December 31, 2007.

The Company ended the third quarter of 2008 with $51.0 million in cash and investments.

Conference Call Information

Management will host a conference call and webcast the same day at 4:30pm EST / 3:30pm CST / 2:30pm MST / 1:30pm PST.  The call may be accessed at 888-724-9507 (domestic), 913-312-9306 (international), or by logging onto the Investors section of the Company’s website, http://investor.capstonethx.com.  A replay will be available beginning November 6, 2008 at 7:30pm EST until midnight November 15, 2008 and may be accessed at 888-203-1112 (domestic) or 719-457-0820 (international) with replay passcode 5436826.

Capstone Therapeutics Announces Third Quarter 2008 Financial Results

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About Capstone Therapeutics

Capstone Therapeutics (trade name of OrthoLogic Corp.) is a biotechnology company committed to developing a pipeline of novel therapeutic peptides aimed at helping patients with under-served medical conditions.  The Company is focused on development and commercialization of two product platforms: AZX100 and Chrysalin® (rusalatide acetate or TP508).

AZX100 is a novel synthetic 24-amino acid peptide, one of a new class of compounds in the field of smooth muscle relaxation and fibrosis.  Based on its demonstrated effects in pre-clinical models, AZX100 is currently being evaluated for commercially significant medical applications such as the treatment of pulmonary disease, the prevention of hypertrophic and keloid scarring and intimal hyperplasia.  Capstone has an exclusive worldwide license to AZX100.

Chrysalin, the Company’s novel synthetic 23-amino acid peptide, has been proven in multiple pre-clinical and clinical models to stimulate cellular events leading to angiogenesis, revascularization, and repair of dermal and musculoskeletal tissues.  It is currently being evaluated in disorders that involve vascular endothelial dysfunction, such as acute myocardial infarction and chronic myocardial ischemia.  The Company owns exclusive worldwide rights to Chrysalin.

Capstone’s corporate headquarters are in Tempe, Arizona.  For more information, please visit the Company's website: www.capstonethx.com.

Statements in this press release or otherwise attributable to Capstone regarding our business that are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include the timing and acceptability of FDA filings and the efficacy and marketability of potential products, involve risks and uncertainties that could cause actual results to differ materially from predicted results. These risks include: delays in obtaining or inability to obtain FDA, institutional review board or other regulatory approvals of pre-clinical or clinical testing; unfavorable outcomes in our pre-clinical and clinical testing; the development by others of competing technologies and therapeutics that may have greater efficacy or lower cost; delays in obtaining or inability to obtain FDA or other necessary regulatory approval of our products; our inability to successfully and cost effectively develop or outsource manufacturing and marketing of any products we are able to bring to market; changes in FDA or other regulations that affect our ability to obtain regulatory approval of our products, increase our manufacturing costs or limit our ability to market our product; affects on our stock price and liquidity if we are unable to meet the requirements for continued listing on the NASDAQ Global Market; our possible need for additional capital in the future to fund the continued development of our product candidates; and other factors discussed in our Form 10-K for the fiscal year ended December 31, 2007, and other documents we file with the Securities and Exchange Commission.

###

Editors’ Note: This press release is also available under the Investors section of the Company’s website at www.capstonethx.com.

Capstone Therapeutics Announces Third Quarter 2008 Financial Results

Page 3

ORTHOLOGIC CORP.

(dba Capstone Therapeutics)

(A Development Stage Company)

CONDENSED BALANCE SHEETS

(in thousands, except share and per share data)

	September 30,			December 31,
	2008			2007
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	7,162		$	20,943
Short-term investments		39,322			18,236
Prepaids and other current assets		1,142			906
Total current assets		47,626			40,085
Furniture and equipment, net		366			318
Long-term investments		4,508			21,459
Total assets	$	52,500		$	61,862
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	905		$	702
Accrued compensation		839			824
Other accrued liabilities		629			875
Total current liabilities		2,373			2,401
Stockholders' Equity
Common Stock  $.0005 par value; 100,000,000 shares authorized; 40,731,642 in 2008 and 41,758,065 in 2007 shares issued and outstanding		20			21
Additional paid-in capital		188,244			189,013
Accumulated deficit		(138,137	)		(129,573	)
Total stockholders' equity		50,127			59,461
Total liabilities and stockholders' equity	$	52,500		$	61,862

Capstone Therapeutics Announces Third Quarter 2008 Financial Results

Page 4

ORTHOLOGIC CORP.

(dba Capstone Therapeutics)

(A Development Stage Company)

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,						As a Development Stage Company
	2008			2007			2008			2007			August 5, 2004 - September 30, 2008
OPERATING EXPENSES
General and administrative	$	815		$	889		$	2,378		$	2,797		$	19,462
Research and development		2,817			2,369			7,845			7,439			70,671
Purchased in-process research and development		-			-			-			-			34,311
Other		-			-			-			-			(375	)
Total operating expenses		3,632			3,258			10,223			10,236			124,069
Interest and other income, net		(488	)		(833	)		(1,659	)		(2,558	)		(12,211	)
Loss from continuing operations		3,144			2,425			8,564			7,678			111,858
Income tax expense		-			-			-			-			356
Loss from continuing operations		3,144			2,425			8,564			7,678			112,214
Discontinued operations - net gain on sale of the bone device business, net of taxes ($267)		-			-			-			-			(2,202	)
NET LOSS	$	3,144		$	2,425		$	8,564		$	7,678		$	110,012
Per Share Information:
Net loss, basic and diluted	$	0.08		$	0.06		$	0.21		$	0.18
Basic and diluted shares outstanding		40,775			41,671			41,200			41,634