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:  April 25, 2011  (Date of earliest event reported)

CAPSTONE THERAPEUTICS 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, Suite 101, 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 7 – Regulation FD

Item 7.01. Regulation FD Disclosure.

Results of AZX100 Phase 2a Pilot Clinical Trial in Surgical (Trocar site) Scarring

On April 27, 2011, Capstone Therapeutics Corp. issued a press release announcing the results of its AZX100 Phase 2a Pilot Clinical Trial in Surgical (Trocar Site) Scarring, and announcing a teleconference and webcast to discuss the results on April 28, 2011.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and a copy of the presentation materials for the teleconference and webcast, entitled “Capstone Therapeutics Clinical & Operating Update, April 28, 2011”is attached as Exhibit 99.2 and is incorporated by reference herein.

Section 8 – Other Events

Item 8.01  Other Events

Stockholder Put Right

 Pursuant to Section 5A of our Certificate of Incorporation, as amended, our stockholders of record on June 30, 2011 have the right to require us, under certain circumstances, to purchase for cash all or a portion of their shares of common stock at a formula-based price on or about July 31, 2011 (the “put right”).  Our obligation to purchase shares upon exercise of the put rights is subject to various conditions.  One condition is that such purchases will not violate applicable law, including Section 160 of the Delaware General Corporation Law (DGCL) relating to share repurchases that may impair capital.  Because the pending qui tam litigation described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2011 seeks potentially significant damages that, if awarded, could exceed the financial resources of the Company, the pendency of this claim at the time of share repurchases pursuant to the put rights could cause the share repurchases to violate Section 160 of the DGCL and the Uniform Fraudulent Transfer Act.

In addition, in determining the price per share to be paid to stockholders upon exercise of the put rights, our Board of Directors must value all contingent liabilities, including the qui tam lawsuit.  Our Board of Directors has determined that, even if the probability of an unsuccessful outcome of this litigation is low, the magnitude of the potential damages that may be awarded in an unfavorable verdict is such that the value ascribed to this contingent liability would cause the per share purchase price upon exercise of the put rights to be zero.

In light of the foregoing, on April, 25, 2011 our Board of Directors decided that, absent settlement, dismissal or other developments in the qui tam litigation or other changes in circumstance, the Company will be unable to purchase shares upon exercise of the put rights and therefore the put rights will expire.

Nasdaq Delisting

Our common stock is listed on the Nasdaq Capital Market.   We are required to meet specified requirements to maintain our listing on the Nasdaq Capital Market.  One such requirement is that we maintain a minimum bid price of at least $1.00 per share for our common stock.  As previously disclosed, on May 7, 2010, we received a letter from The Nasdaq Stock Market notifying us that for the 30 consecutive business days preceding the date of the letter, the bid price of our common stock had closed below the $1.00 per share minimum bid price required for continued inclusion on the Nasdaq Capital Market pursuant to the Nasdaq Listing Rules.

In accordance with Nasdaq Listing Rules, we had 180 calendar days from the date of the Nasdaq letter, or until November 3, 2010, to regain compliance with the minimum bid price rule.  To regain compliance, the closing bid price of our common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days.  Nasdaq may, in its discretion, require us to maintain a bid price of at least $1.00 per share for a period in excess of 10 consecutive business days, but generally no more than 20 consecutive business days, before determining that we have demonstrated an ability to maintain long-term compliance.  As previously disclosed, on November 11, 2010, we received a letter from Nasdaq, notifying us that we had not regained compliance by November 3, 2010 with the Nasdaq Listing Rules.

Nasdaq determined that as of November 11, 2010, we met all applicable requirements of the Nasdaq Listing Rules, other than the minimum bid price, for continued listing on the Nasdaq Capital Market.  Accordingly, we were afforded an additional period, ending May 2, 2011, to regain compliance with the minimum bid price rule.  Our common stock will continue to be listed on the Nasdaq Capital Market through this date.  If compliance is not regained, Nasdaq will notify us of its determination to delist our common stock, which decision may be appealed to a Nasdaq Hearing Panel.  We will not satisfy the minimum bid price requirement for 10 consecutive days prior to the May 2, 2011 deadline.

On March 29, 2011 we mailed a letter to our stockholders requesting input regarding whether we should propose a reverse stock split of the outstanding shares of our common stock to attempt to regain compliance with the Nasdaq minimum bid price requirement. Feedback from that letter has been more against than for the proposal to effect a reverse stock split. On April 25, 2011 our Board of Directors decided that we will not propose a reverse stock split to our stockholders at our next annual meeting.  Accordingly, we expect that our common stock will be delisted from the Nasdaq Capital Market in due course.  Upon delisting, trading, if any, of our common stock will be limited to the over-the-counter market on the OTC Bulletin Board or other similar venues.  Please see the discussion of the possible effects of delisting under “Risk Factors - Risks Related to Our Common Stock” in Item 1A of Part I of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2011.

Section 9 – Financial Statements and Exhibits

Item 9.01  Financial Statements and Exhibits.

(d)                      Exhibits

Exhibit No.    Description

99.1*               Press Release dated April 27, 2011

99.2*              Capstone Therapeutics Clinical & Operating Update, April 28, 2011

* Furnished pursuant to Item 7.01.

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:  April 27, 2011                                                           CAPSTONE THERAPEUTICS CORP.

/s/ John M. Holliman, III

John M. Holliman, III

Executive Chairman

EX-99

EXHIBIT 99.1

Capstone Therapeutics Confirms Early Signal of AZX100 Effect Based on Final Results of Phase 2a Pilot Clinical Trial in Surgical (Trocar Site) Scarring

TEMPE, Ariz., April 27, 2011 (GLOBE NEWSWIRE) -- Capstone Therapeutics (Nasdaq:CAPS) (the "Company") today announced that the final results from its AZX100 Phase 2a pilot clinical trial in surgical (trocar site) scarring confirmed the early signal of effect observed in the interim analysis previously announced. The Company plans to continue its efforts to secure a clinical development partner and move AZX100 toward additional trials in dermal scarring.

AZX100 Phase 2a in Surgical (Trocar Site) Scarring

Study Description

The Company conducted a pilot Phase 2a clinical trial of AZX100 in surgical (trocar site) scarring (OL-ASCAR-03); this was a double-blind, placebo within-patient controlled, multi-center dose ranging study to evaluate the safety and preliminary efficacy of AZX100 (3.0 mg or 10.0 mg versus placebo) in trocar site scars of subjects who have undergone arthroscopic shoulder surgery. In this trial, AZX100 (or placebo) was administered on Days 9 and 21 following surgery, with no additional dosing throughout the remainder of the trial. One hundred fifty subjects were dosed in the trocar site scarring trial.

Pre-specified endpoints of these studies included evaluations of safety and efficacy of AZX100 based on the subjective primary endpoint Patient and Observer Scar Assessment Scales (POSAS) and objective secondary endpoints analyzed using 2D and 3D high-resolution digital photography. These endpoints included blinded, independently-scored Visual Analog Scales (VAS) and objective measurements of scar dimensions (length, width, elevation and volume).

Analytical History

As reported by the Company on December 14, 2010, a limited seven-month interim analysis of the Phase 2a pilot surgical (trocar site) scarring trial (the "Original Analysis") showed a favorable safety profile and revealed multiple signals of AZX100 efficacy, more often within the 3.0 mg trocar sites than within sites receiving 10.0 mg. Within this analysis - which focused on objective measurements of the trocar site scars based on high resolution 3-dimensional digital photography - most AZX100 treatment effect at 3.0 mg was seen at time points earlier than Month 7; e.g., Scar Total Volume at Month 3 (p = 0.047) and Scar Length at Month 5 (p = 0.034).

As announced by the Company on April 4, 2011, the size and complexity of the study data set forced a delay in reporting final results. Among the subjective, "mixed" and objective metrics selected for this trial (POSAS, VAS and high-resolution digital photography, respectively), only the objective metrics utilizing 3D photographic imaging and mapping detected a therapeutic effect. Furthermore, certain challenges were encountered in confirming within the final data set (the "Final Analysis") the imaging results and interim "signal" obtained from the Original Analysis, due largely to the small size and healing qualities of the trocar site scars.

The Final Analysis incorporates data obtained from a complete review of all objective metrics, with imaging and mapping techniques consistently applied.

Final Results

• The early signal of AZX100 effect was observed in objective measurements of the trocar site scars based on high resolution 3-dimensional digital photography. For example, significantly smaller scars as measured by total volume were seen at Month 3 in the AZX100 treatment groups for both 3.0 mg (p = 0.0094) and 10.0 mg (p = 0.033). P-values for this metric at Month 12 were 0.56 and 0.66 for the 3.0 mg and 10.0 mg treatment groups respectively.
• An examination of scar histology at Month 12 – measuring collagen density, maturity and orientation – also revealed a signal of efficacy for AZX100 at 3.0 mg (significant or nearly significant improvements in all three tests of 3.0 mg AZX100 vs. placebo); this was not observed in the histological tests of 10.0 mg AZX100.
• The primary efficacy endpoint was the Month 12 score on the subjective POSAS. This trial did not meet the study objective of demonstrating statistically-significant efficacy based on differences in this scale between AZX100 (3.0 mg or 10.0 mg) and placebo at Month 12.
• Secondary endpoints including earlier monthly POSAS and VAS scores showed no meaningful benefit of AZX100 treatment.
• The safety profile of AZX100 was deemed favorable.

Commentary

"We are pleased that the final results of this pilot clinical study have confirmed the favorable safety profile of AZX100 and disclosed a statistically significant signal of an early positive effect for AZX100 in trocar site scars," said Randolph C. Steer, MD, PhD, President of Capstone Therapeutics. "With these latest results, the AZX100 efficacy signal previously seen in keloid scars has now been established in trocar site scars. These results were obtained at AZX100 doses and administration schedules that may not be optimal, which indicates an opportunity to amplify this early signal through additional studies."

"We believe the implications of these results for an AZX100 partnering event in dermal scarring are favorable," said Jock Holliman, Executive Chairman of Capstone. "Our efforts aimed at partnering will continue. While there are no guarantees that an arrangement will be reached, we remain optimistic regarding the prospects for AZX100 in dermal scarring."

Capstone Therapeutics to Host AZX100 Clinical Update Teleconference

Capstone will host a conference call and webcast on Thursday, April 28, 2011 at 9:00am EDT / 8:00am CDT / 6:00am MST/PDT. The call may be accessed at 877-303-9204 (U.S.), 760-536-5225 (outside U.S.); accompanying slides may be viewed on the Investors section of the Company's website, www.capstonethx.com. A replay will be available beginning April 28, 2011 at 12:00 noon EDT until midnight, May 1, 2011 and may be accessed at 800-642-1687 (U.S.), 706-645-9291 (outside U.S.) with conference ID 63370938.

About Capstone Therapeutics

Capstone Therapeutics 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 and safety in clinical trials, AZX100 is currently being evaluated for commercially significant medical applications such as the prevention or reduction of hypertrophic and keloid scarring and treatment of pulmonary fibrosis. 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.

The Capstone Therapeutics logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5429

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; effects of the Capstone Stockholder Put Rights or ongoing qui tam litigation on our stock price, liquidity or our ability to continue operations; effects on our stock price and liquidity if we are unable to meet the requirements for continued listing on the Nasdaq Capital Market; our 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, 2010, and other documents we file with the Securities and Exchange Commission.

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

CONTACT: Karen Struck, Investor Relations
         (602) 286-5250
         kstruck@capstonethx.com

         Lauren Glaser - The Trout Group
         (415) 392-3310
         lglaser@troutgroup.com

EX-99

1

Capstone Therapeutics

Clinical & Operating Update

April 28, 2011

AZX100

AZX100

2

Safe Harbor Statement

uStatements in this presentation 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; effects of the
Capstone Stockholder Put Rights or ongoing qui tam litigation on our stock price, liquidity or
our ability to continue operations; effects on our stock price and liquidity if we are unable to
meet the requirements for continued listing on the NASDAQ Capital Market; our 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, 2010,
and other documents we file with the Securities and Exchange Commission.

3

Agenda

A.Final Results:
AZX100 OL-ASCAR-03 - Trocar Sites of
Arthroscopic Shoulder Surgery Patients

B.Status:Stockholder Put Right

C.Status:NASDAQ Listing

D.Operating Results:December 31, 2010

E.Summary

4

A)Twelve-Month Results:
AZX100 OL-ASCAR-03 - Trocar Sites
of Arthroscopic Shoulder Surgery
Patients

5

Dermal Scarring: Range of Indications

Keloid Scars

•Overgrowth of dense fibrous
tissue

•Extend beyond borders of
original wound

•Do not regress
spontaneously

•Tend to recur after excision

Hypertrophic Scars

•Red, itching, raised fibrous lesions

•Typically do not expand beyond
boundaries of initial injury

•May undergo partial spontaneous
resolution

•Common after thermal and other
injuries that involve deep dermis

Normal / Common Scars

•Various types:

•Flat, pale

•Sunken

•Red, dark, raised

•Result from surgery, burns
acne

6

Evidence of AZX100 Impact on Dermal Scarring

uCellular (in vitro) (2007)

►AZX100 decreased expression of CTGF & Type 1 collagen

►AZX100 decreased stress fiber formation & altered morphology of
human dermal keloid fibroblasts*

uPre-Clinical (2007)

►AZX100 significantly improved collagen organization in Siberian
hamster scarring model*

uClinical (2008-2010)

►Phase 1a & 1b Safety Profile - No drug-related SAEs

►Phase 1b - Strong pharmacologic signal & early signal of activity

►Phase 2a - Two studies (now completed) demonstrated safety
& observed signals of efficacy

uTotal Clinical Subjects (to date):N = 338

*Lopes, L., et al. “Cell Permeant Peptide Analogues of the Small Heat Shock Protein, HSP20, Reduce TGF-β1-Induced CTGF Expression in
Keloid Fibroblasts.”Journal of Investigative Dermatology 129, 590-598 (11 September 2008) doi:10.1038/jid.2008.264 Original Article

7

uAppearance

►Aesthetic improvement

uScar Strength

►Reduce risk of dehiscence/scar splitting &
subsequent infection

uAcceleration of Time to Maximum Healing /
Improvement

►Avoid post-surgical risks

Goals of Dermal Scar Therapy

8

Goals of Phase 2a

uSafety & Tolerability

uInitial Investigation of Dose & Administration

uAnalyses to Detect Any Signal
or Trend of Efficacy

uPhase 2a is not a registration trial

9

AZX100 Phase 2a Pilot Clinical Trial in
Surgical (Trocar Site) Scars

uOne Study:

►OL-ASCAR-03:3.0 mg, 10.0 mg or placebo

uObjective:

►Scar reduction in trocar sites

uStudy Design:

►Comparison of three trocar site scars following arthroscopic
shoulder surgery

►Placebo-controlled; n = 150 dosed

►Two active doses per patient (intra-patient control)
3.0 mg, 10.0 mg

►Placebo-only cohort (n=25)

►Two intradermal injections into each trocar site

●9 ± 2 days following surgery

●21 ± 2 days following surgery

10

AZX100 Dermal Scarring Phase 2a Clinical Program

Deliverables

OL-ASCAR-03

(Trocar Sites)

Final Data: 2Q2011

OL-ASCAR-04 / -05

(Keloids)

Final Data: 4Q2010

3D Digital Photography

Height, Length,

Volume, Width

Safety

(Subjective)

(Objective)

(“Sub/Objective”)

POSAS*

@ 12 months

2D Digital Photography

VAS**

* POSAS:Patient and Observer Scar Assessment Scale; ** VAS:Visual Analog Scale

11

uFinal Analysis Reveals Signals of Efficacy

►Monthly statistical tests performed:Months 3-12

►8 tests yielded statistically significant or near significant results;
7 of these 8 favored AZX100

►Significant or nearly significant findings occurred early;
slightly more often at 3.0 mg than at 10.0 mg; primarily at Month 3

●Example:Total Scar Volume at Month 3AZX100 - 3.0 mg vs. placebo; p = 0.0094*
AZX100 - 10.0 mg vs. placebo; p = 0.033*

►Scar histology at Month 12
Collagen Density, Maturity and Organization favored
AZX100 3.0 mg, with p-values of 0.05 to 0.10 for all three variables

uFavorable Safety Profile

AZX100 Phase 2a Pilot Clinical Trial
in Surgical (Trocar Site) Scars - Final Results

* p-values ≤ 0.05 are considered statistically significant

12

Is AZX100 a Viable Candidate for
Clinical & Commercial Development?

uNovel Mechanism: Anti-fibrotic

uStrong Patent Position

uPhase 2a - Early Human Efficacy Trials

►Demonstrated Safety

►Observed Signal of Efficacy Across Multiple Metrics & Time Points

uCost-Effective Manufacturing Process

uMarket Potential…

►Multiple Indications

●Dermal Scarring (Keloid; Hypertrophic; Surgical)

●Other Fibrotic Disorders (e.g., IPF)

►Large Market

●22.5 Million Surgical Procedures Performed Annually in U.S. Alone

●Incidence of Keloid Susceptibility within Certain Populations:5% - 15%

●Estimated Addressable Market >$1.0 Billion

►Potential Prophylactic Standard of Care in General Surgery

►Potential Reimbursement for Problem Scars (Keloid)

13

Is AZX100 a Viable Candidate for
Clinical & Commercial Development?

uAnswer:YES

►Capstone believes the AZX100
development program in
dermal scarring should be continued

uTo this end…

►Capstone is pursuing a pharma or biotech
collaboration to fund development

►Internal planning & development programs continue

►Clinical Pathway Indicated

●Initiate Phase 2 dose / administration optimization studies

14

B) Status:Stockholder Put Right

15

Novel Corporate Governance

uStockholder Put Right - Approved May-2010

uMechanics:

►Gives all CAPS Stockholders as of record date (30-
Jun-2011) the right to “put” their shares of common
stock to the Company on or about 31-Jul-2011 for
cash redemption at formula-based price*

●*Net Liquid Assets less Commitments and Contingencies

►Put Right will expire if:

●Material Transaction

●Plan of Dissolution or Liquidation

●Change in Control

16

Stockholder Put Right Status

u4Q2009 - CAPS publicly disclosed that OrthoLogic (OLGC), its predecessor
legal entity, was named as a defendant in a “qui tam” action against the
orthopedic device industry

►CAPS joined group defense and sought summary dismissal

uDec-2010 - Judge allowed case to continue to discovery on a technicality

uFeb-2011 - CAPS advised by counsel that Delaware law prohibits stockholder
distribution in face of an undefined contingent liability

uApr-2011 - CAPS Board of Directors Determination

►Pending qui tam litigation seeks potentially significant damages that, if awarded,
could exceed financial resources of the Company

►Pendency of this claim at the time of share repurchases could cause violation Section
160 of Delaware General Corporation Law & Uniform Fraudulent Transfer Act

►Although the probability of an unsuccessful outcome is low, the magnitude of potential
damages is such that the value ascribed to this contingent liability would cause per-
share purchase price to be zero upon exercise of the put rights

►Absent a settlement, dismissal or other developments by June 30, 2011, the
Company will be unable to purchase shares upon exercise of the put rights as the
per-share purchase price determined by the Board will be zero and the put rights will
expire

17

CAPS Legal Position re: Qui Tam

uAggressive defense

uLegacy Issue

►CAPS/OLGC exited bone stimulation device business Nov-2003
with sale to DJ Orthopedics

►Notice of lawsuit received six years after selling the business

uOLGC under regulatory compliance mandate with U.S. Dept. of
Health during period in question

►Filed annual compliance reports

uOLGC not named with other defendants in “follow-on”
lawsuit regarding kickbacks

uU.S. Gov’t has not joined plaintiff in lawsuit

►94% dismissal rate in qui tam cases that lack federal
participation; remaining 6% have moved to judgment / settlement

18

C) Status:NASDAQ Listing

19

NASDAQ Listing Compliance

uTiming

►Compliance period ends 02-May-2011

●NASDAQ discretion regarding length of grace period

►Appeal process of two to three weeks

►Reverse stock split is sole NASDAQ-accepted plan

►CAPS may move to CAPS.OB listing

uBoard opposes reverse stock split

►Less float

►Market capitalization often declines

uCAPS polled stockholders via letter seeking input
regarding reverse split as a mechanism to maintain
NASDAQ listing

►Feedback has indicated stockholder preference against the
proposal of a reverse stock split

20

D) Key Financial Facts

21

Capstone Financial Summary

Capstone Key Financial Facts

u$24.4MM cash (31-Dec-2010); within guidance

uNo long-term debt

u52-wk Range:$0.38 - $1.23

uMarket Cap as of 26-Apr-2011 : ~$16.7MM

	Guidance	Actual
2006	Orig: $35.0MM Rev: $15.0-$17.5MM	$13.4MM
2007	$18.0 - $19.0MM	$9.6MM
2008	$13.0 - $15.0MM	$12.6MM (incl. $1.041MM stock repurchase)
2009	$14.0 - $16.0MM	$12.8MM
2010	~$13.0MM	$10.8MM

22

E) Summary

23

Summary

uAZX100 shows safety and signal of efficacy
in dermal scarring

uCAPS believes AZX100 is a viable
commercial candidate

►Industry will cast deciding vote through
partnering

●If AZX100 is partnered, clinical trials proceed

●If AZX100 is not partnered, CAPS optimizes
clinical program value and preserves cash assets
for benefit of stockholders

24

NASDAQCM:CAPS

www.capstonethx.com

Capstone Therapeutics

1275 West Washington Street - Suite 101

Tempe, AZ85281

(602) 286-5520