Capstone Holding Corp. · NASDAQ:CAPS
Capstone — Capstone Therapeutics — Shareholder Meeting (June 2011)
29 slides from Capstone's shareholder meeting presentation, Jun 6, 2011
Slide 1: Capstone Therapeutics Annual Meeting Update
Thrombin TP508 Capstone Therapeutics Annual Meeting Update June 6, 2011 oN CAPSTONE 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements 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 th
Slide 3: Agenda
Agenda A. Final Results: AZX100 OL-ASCAR-03 - Trocar Sites of Arthroscopic Shoulder Surgery Patients Status: Stockholder Put Right Status: NASDAQ Listing Operating Results: March 31, 2011 Summary moowgo oN CAPSTONE
Slide 4: A) Twelve-Month Results
A) Twelve-Month Results: AZX100 OL-ASCAR-03 - Trocar Sites of Arthroscopic Shoulder Surgery Patients oN CAPSTONE
Slide 5: Dermal Scarring: Range of Indications
Dermal Scarring: Range of Indications ma Keloid Scars Hypertrophic Scars Normal / Common Scars * Overgrowth of dense fibrous + Red, itching, raised fibrous lesions + Various types: tissue * Typically do not expand beyond + Flat, pale + Extend beyond borders of boundaries of initial injury + Sunken o
Slide 6: Evidence of AZX100 Impact on Dermal Scarring
Evidence of AZX100 Impact on Dermal Scarring @ Cellular (in vitro) (2007) >» AZX100 decreased expression of CTGF & Type 1 collagen > AZX100 decreased stress fiber formation & altered morphology of human dermal keloid fibroblasts* @ Pre-Clinical (2007) > AZX100 significantly improved collagen organiz
Slide 7: Goals of Dermal Scar Therapy
Goals of Dermal Scar Therapy @ Appearance > Aesthetic improvement @ Scar Strength > Reduce risk of dehiscence/scar splitting & subsequent infection @ Acceleration of Time to Maximum Healing / Improvement > Avoid post-surgical risks oN CAPSTONE
Slide 8: Goals of Phase 2a
Goals of Phase 2a Safety & Tolerability Initial Investigation of Dose & Administration Analyses to Detect Any Signal or Trend of Efficacy Phase 2a is not a registration trial
Slide 9: AZX100 Phase 2a Pilot Clinical Trial in Surgical (Trocar Site) Scars
AZX100 Phase 2a Pilot Clinical Trial in Surgical (Trocar Site) Scars @ One Study: > OL-ASCAR-03: 3.0 mg, 10.0 mg or placebo @ Objective: > Scar reduction in trocar sites @ Study Design: > Comparison of three trocar site scars following arthroscopic shoulder surgery > Placebo-controlled; n = 150 dose
Slide 10: AZX100 Dermal Scarring Phase 2a Clinical Program
AZX100 Dermal Scarring Phase 2a Clinical Program Deliverables (Objective) 3D Digital Photography Height, Length, Volume, Width (Subjective) (“Sub/Objective”) POSAS* 2D Digital Photography @ 12 months vas™ OL-ASCAR-03 OL-ASCAR-04 / -05 (Trocar Sites) (Keloids) Final Data: 2Q2011 Final Data: 4Q2010 *
Slide 11: AZX100 Phase 2a Trocar Site Scars: Final Results
AZX100 Phase 2a Pilot Clinical Trial in Surgical (Trocar Site) Scars — Final Results @ Final 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 n
Slide 12: AZX100 3.0 mg Scar Results by Month
Baseline Month 3 Month 6 Month 9 Month 12 AZX100 3.0 mg
Slide 13: AZX100 3.0 mg vs Placebo by Month
Baseline Month 3 Month 6 Month 9 Month 12 AZX100 3.0 mg Placebo
Slide 14: Is AZX100 a Viable Candidate for Clinical & Commercial Development?
Is AZX100 a Viable Candidate for Clinical & Commercial Development? Novel Mechanism: Anti-fibrotic Strong Patent Position Phase 2a — Early Human Efficacy Trials > Demonstrated Safety > Observed Signal of Efficacy Across Multiple Metrics & Time Points Cost-Effective Manufacturing Process Market Poten
Slide 15: Is AZX100 a Viable Candidate? Answer: Yes
Is AZX100 a Viable Candidate for Clinical & Commercial Development? @ Answer: YES > Capstone believes the AZX100 development program in dermal scarring should be continued @To this end... > Capstone is pursuing a pharma or biotech collaboration to fund development > Internal planning & development p
Slide 16: Update: TP508
Update: TP508 eS CAPSTONE
Slide 17: TP508 Development Alliance
Thrombin TP508 Development Alliance TPSO8 Material Transfer Agreement w/ BiolineRx (Jerusalem) @Focus: AMI @Two Sequential Aims: “Acute” and “Chronic” Effects Regulatory requirement; IND-enabling studies Majority funded by BiolineRx oN CAPSTONE 7
Slide 18: B) Status: Stockholder Put Right
B) Status: Stockholder Put Right
Slide 19: Novel Corporate Governance
Novel Corporate Governance oN CAPSTONE @ Stockholder Put Right - Approved May-2010 @ Mechanics: > 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* e*90% of L
Slide 20: Stockholder Put Right Status
Stockholder Put Right Status @ 4Q2009 - 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 Dec-2010 - Motion to dismiss was denied
Slide 21: CAPS Legal Position re: Qui Tam
CAPS Legal Position re: Qui Tam @ Aggressive defense @ Legacy 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 @ OLGC under regulatory compliance mandate with U.S. Dept. of Health during p
Slide 22: C) Status: NASDAQ Listing
C) Status: NASDAQ Listing
Slide 23: NASDAQ Listing Compliance
NASDAQ Listing Compliance @ Timing > Compliance period ended 02-May-2011 > Appeal in process - Hearing scheduled for 30-Jun-2011 > Hearings Panel has discretion to extend listing time period; however, hurdle for success is high absent a reverse stock split > CAPS may move to OTC Bulletin Board listi
Slide 24: D) Operating Results
D) Operating Results oN CAPSTONE 24
Slide 25: Capstone Financial Summary
Capstone Financial Summary Capstone Key Financial Facts @ $21.6MM cash (31-Mar-2011) @ No long-term debt @ 52-wk Range: $0.24 - $1.23 @ Market Cap as of 02-Jun-2011 : ~$9.9!MM oN CAPSTONE Guidance Actual Orig: $35.0MM ane Rev: $15.0-$17.5MM o1saMM 2007 $18.0 - $19.0MM $9.6MM 2008 $13.0 - $15.0MM . $
Slide 26: Balance Sheet
Balance Sheet (0008) ASSETS Current assets ‘Cash and cash equivalents Short-term investments Interest receivable and other cunrent arses Total curent assets Fumitue and equipment, net Long-tema investaents Total assets LIABILITIES AND STOCKHOLDERS’ EQUITY ‘Curent liabities Potentially Redeemable Equ
Slide 27: E) Summary
E) Summary oN CAPSTONE 7
Slide 28: Summary
Summary #AZX100 shows safety and signal of efficacy in dermal scarring @CAPS believes AZX100 is a viable commercial candidate > Industry will cast deciding vote through partnering elf AZX100 is partnered, clinical trials proceed elf AZX100 is not partnered, CAPS optimizes clinical program value and
Slide 29: Capstone Therapeutics
ZA~ CAPSTONE. THERAPEUTICS Naspa@CM: CAPS www.capstonethx.com Capstone Therapeutics 1275 West Washington Street - Suite 101 Tempe, AZ 85281 (602) 286-5520 ZS CAPSTONE 2
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