TEMPE, Ariz., Nov. 9, 2009 (GLOBE NEWSWIRE) -- Capstone Therapeutics (Nasdaq:CAPS), trade name of OrthoLogic Corp. (the "Company"), today announced financial results for the third quarter 2009.
The Company reported a net loss of $3.3 million, or $0.08 per share, for the third quarter 2009, compared to a net loss of $3.1 million or $0.08 per share for the third quarter 2008.
The Company incurred a net loss in the nine months ended September 30, 2009 of $10.6 million compared to a net loss of $8.6 million in the same period in 2008. The $2 million increase in net loss for the nine months ended September 30, 2009 compared to the same period in 2008 resulted primarily from an increase in AZX100 clinical trial activity, purchases of peptide for pre-clinical studies, and reduced interest income due to the decrease in interest rates earned on investments between the two periods and reduction in the amount available for investment.
The Company began 2009 with $48.0 million in cash and investments and ended the third quarter of 2009 with $38.7 million in cash and investments.
Conference Call Information
Management will host a conference call and webcast today, presenting third quarter 2009 operating results, at 4:30pm EST / 3:30pm CST / 2:30pm MST / 1:30pm PST. The call may be accessed at 888-617-5714 (domestic), 719-457-2656 (international); accompanying slides can be viewed by logging onto the Investors section of the Company's website, www.capstonethx.com. A replay will be available beginning November 9, 2009 at 7:30pm EST until midnight November 12, 2009 and may be accessed at 888-203-1112 (domestic) or 719-457-0820 (international) with replay passcode 8466177.
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(R) (rusalatide acetate or TP508).
AZX100 is a novel synthetic 24-amino acid peptide, one of a new class of compounds with effects on both 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, treatment of pulmonary fibrosis 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, U.S.A. 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 on our stock price and liquidity if we are unable to meet the requirements for continued listing on the NASDAQ Global 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, 2008, 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.
ORTHOLOGIC CORP.
(dba Capstone Therapeutics)
(A Development Stage Company)
CONDENSED BALANCE SHEETS
(in thousands, except share data)
Sept. 30, Dec. 31,
2009 2008
-------- --------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 15,047 $ 23,088
Short-term investments 23,647 22,675
Interest receivable and other current assets 630 1,094
-------- --------
Total current assets 39,324 46,857
Furniture and equipment, net 347 436
Long-term investments -- 2,221
-------- --------
Total assets $ 39,671 $ 49,514
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 727 $ 1,063
Accrued compensation 599 648
Other accrued liabilities 1,123 281
-------- --------
Total current liabilities 2,449 1,992
Stockholders' Equity
Common Stock $.0005 par value;
100,000,000 shares authorized; 40,775,411 in
2009 and 40,775,411 in 2008 shares issued and
outstanding 20 20
Additional paid-in capital 188,575 188,314
Accumulated deficit (151,373) (140,812)
-------- --------
Total stockholders' equity 37,222 47,522
-------- --------
Total liabilities and stockholders' equity $ 39,671 $ 49,514
======== ========
ORTHOLOGIC CORP.
(dba Capstone Therapeutics)
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
As a
Develop-
ment Stage
Company
Three months ended Nine months ended August 5,
September 30, September 30, 2004 -
------------------ ------------------ Sept. 30,
2009 2008 2009 2008 2009
-------- -------- -------- -------- --------
OPERATING EXPENSES
General and
administrative $ 604 $ 815 $ 2,172 $ 2,378 $ 22,247
Research and
development 2,843 2,817 9,030 7,845 82,549
Purchased in-process
research and
development -- -- -- -- 34,311
Other -- -- -- -- (375)
-------- -------- -------- -------- --------
Total operating
expenses 3,447 3,632 11,202 10,223 138,732
Interest and other
income, net (150) (488) (641) (1,659) (13,275)
-------- -------- -------- -------- --------
Loss from
continuing
operations 3,297 3,144 10,561 8,564 125,457
Income tax benefit -- -- -- -- (7)
-------- -------- -------- -------- --------
Loss from
continuing
operations 3,297 3,144 10,561 8,564 125,450
Discontinued
operations - net
gain on sale of the
bone device
business, net of
taxes of $267 -- -- -- -- (2,202)
-------- -------- -------- -------- --------
NET LOSS $ 3,297 $ 3,144 $ 10,561 $ 8,564 $123,248
======== ======== ======== ======== ========
Per share
information:
Net loss, basic
and diluted $ 0.08 $ 0.08 $ 0.26 $ 0.21
======== ======== ======== ========
Basic and diluted
shares outstanding 40,775 40,775 40,775 41,200
======== ======== ======== ========