ex99_1.htm

AZX100

Overview &

Corporate Development Strategy

February 2009

Safe Harbor Statement

u Statements in this presentation or otherwise attributable to Capstone Therapeutics (trade
name of OrthoLogic Corp.) 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.

Capstone Overview

Capstone is a Clinical-Stage Biopharmaceutical Company

u AZX100 - Entering Phase 2 in Dermal Scarring 1Q2009

► Synthetic peptide with demonstrated effects

● Anti-fibrotic

● Smooth muscle relaxation

u Chrysalin® (TP508) - Pre-Clinical Proof-of-Concept in
Acute Myocardial Infarction

► Synthetic peptide with demonstrated effect in vascular endothelial dysfunction

► Excellent safety profile in 565 human subjects in other indications

u Strong IP portfolio

u Internal Product Development Capabilities

► 26 FTEs (10 PhD and/or MD)

► Experienced management, public company infrastructure

► Expertise in science, pre-clinical, regulatory, clinical, administration

Capstone 2008 Summary

Capstone Report Card 2008

u Achieved All Corporate Objectives

u AZX100

► Successful Phase 1a safety study (30 subjects)

● Met safety endpoint

► Successful Phase 1b safety study (40 subjects)

● Met safety endpoint

● Significant pharmacologic effect

● Trend of efficacy in scar reduction

► Pre-clinical progress in additional high-value indications

► Published fibroblast mechanism data

u Chrysalin (TP508)

► Completed landmark pre-clinical proof-of-concept AMI study

► Published key studies on cellular effects / mechanism of action

► Initiated corporate partnering process

AZX100

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

Atrophic (Normal) Scars

• Various types:

• Flat, pale

• Sunken

• Red, dark, raised

• Result from surgery, burns
acne

Dermal Scarring: Range of Indications

AZX100 Dermal Scarring - Compelling Rationale

u Cellular (in vitro)

► AZX100 decreased expression of CTGF & Type 1 collagen

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

u Pre-Clinical

► AZX100 significantly improved collagen organization in Siberian
hamster scarring model

u Clinical

► Phase 1a & 1b Safety Profile

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

u Commercial Potential

► 21 million surgical procedures performed annually in the U.S. that
can result in some form of dermal scarring

u Conclusion: Initiate Phase 2 Program

AZX100 Phase 2 Dermal Scarring

u Initiation: 1Q2009

u Four clinical trial sites; n~150

u Arthroscopic shoulder surgery subjects

u Multiple doses, administrations

►Intra-patient control

u Efficacy endpoints

►Use of validated criteria

►2D/3D digital photography; visual, other scoring scales

u Biopsies of scar sites

u Interim analysis late 2009; 12-month follow-up

AZX100 Phase 2 Keloid Pilot Study

u Initiation: 1Q2009

u Two clinical trial sites; n~30

u Volunteers - keloid scar excision

u Multiple doses, administrations

u Placebo control

u Efficacy endpoints

►Use of validated measurement criteria

►2D/3D digital photography; visual, other scoring scales

u Informal observational analysis late 4Q2009 for
internal purposes; 12-month follow-up

Capstone Pipeline

AZX100 Status Report

Under Existing Dermal IND

Chrysalin®

Capstone Financial Summary

Capstone Key Financial Facts

u $48.0MM cash (31-Dec-2008)

►Favorable to guidance

u No long-term debt

u 52-wk Range: $0.40 - $1.29

u Mkt Cap as of February 5, 2009 : ~$18.3MM

Capstone Cash Burn

	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 (includes $1.041MM stock repurchase)
2009	$14.0 - $16.0MM

Capstone Manages Cash with Discipline

Capstone Therapeutics - Value Potential

uUnique molecules targeting high-value
indications

uNear-term value-creating events

uCash resources

uValue Creation in 2009

►AZX100 Phase 2 Program in Dermal Scarring

►AZX100 Keloid Pilot Study

►Chrysalin Corporate Partnering in AMI

NASDAQ: CAPS

www.capstonethx.com

Capstone Therapeutics

1275 West Washington Street - Suite 101

Tempe, AZ 85281

(602) 286-5520