Slide 1: Capstone Therapeutics Operating Update
Azx100 1 ie: Capstone Therapeutics Operating Update March 14, 2013 oN CAPSTONE
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 forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking s
Slide 3: Cash Report
Cash Report 2012 CAPS $ (662,000) $ (292,000) $ (445,000) $ (674,000) $ (2,073,000) Lipimetix : 2 $ (1,024,000) $ (476,000) —$ (1,500,000) Consolidated $ (662,000) $ (292,000) $ (1,469,000) $ (1,150,000) $ (3,573,000) Cash Balance $13,116,000 $12,824,000 $ 11,355,000 $ 10,205,000 — $ 10, 205,000 Not
Slide 4: Qui Tam Lawsuit Update
Qui Tam Lawsuit Update > First discovery hearing held in February 2013 — no lawsuit discovery yet initiated — duration of discovery process uncertain > Proposed DOJ/Orthofix settlement still in court review — has slowed lawsuit progress > Settlement/Trial: Timing Unknown oN CAPSTONE 4
Slide 5: LipimetiX Development LLC (JV)
LipimetiX Development LLC (JV) ¢ ¢ OOO ooo LLC Format CAPS contributed $6M for 60% (ownership) 2 tranche funding milestone to IND allowance $5M of CAPS contribution has preferential distribution right LipimetiX LLC (Lipi) contributed UAB license for current/future IP, for 40% (ownership) JV contract
Slide 6: AEM-28 Rational Design at UAB
AEM-28 Rational Design at UAB — 299 aa down to 28 aa with full function "Hinge region ALS I Apolipoprotein E : Lipimetfg@)
Slide 7: Target Indications
Target Indications @ Homozygous Familial Hypercholesterolemia (HoFH) >» Absence of LDL receptor function > Cannot clear LDL or control cholesterol levels > Orphan indication, potential for rapid development/ approval > Potential $200 million market @ Severe Refractory Hypercholesterolemia > Not resp
Slide 8: Target Indications -2
Target Indications -2 @ Acute Coronary Syndrome > 1,300,000 hospitalizations/year in US alone > 10-25% recurrence rate in first year after event >» Reduce atherosclerosis burden and mortality > Potential $11 Billion annual market > Will require an outcome study oN Lipii CAPSTONE ; pimerf)
Slide 9: Fast-Track Development
Fast-Track Development due to unmet need, orphan drug status (foiled) Cumulative Cash $ Millions OANWA AOD Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 — ' * Phase 1 - Single ascending-dose study Toxicology stud cFormueton *(MTD, safety) in LDL>160 mg/dl ¥ Preliminary dose ranging ¥ Demonstrate LDL lowering + Phase 1
Slide 10: Homozygous FH Animal Evidence: AEM-28 Reduces LDL & VLDL
Homozygous FH Animal Evidence: AEM -28 Reduces LDL & VLDL >» Watanabe Heritable Hyperlipidemic (WHHL) Rabbits have same genetic defect as human FH patients WHHL rabbits are refractory to statins, bile acid sequestrants, etc. Single dose of AEM-28 reduces non-HDL cholesterol 45% at 18 hours Vv Vv 0.0
Slide 11: ACS Animal Evidence
ACS Animal Evidence: Direct Artery Wall Effects Reduce Atherosclerosis Reduction in Atherosclerosis far Exceeds Cholesterol Drop Control Animal Plasma Cholesterol = 1600 mg/dl 51% of aorta covered by fatty streaks AEM-28 Animal Plasma Cholesterol = 1100 mg/dl 8% of aorta covered by fatty streaks -Li
Slide 12: Summary — Apo E Mimetics
Summary — Apo E Mimetics @ Novel mimetics of key lipid/cholesterol metabolism protein > Utilizes alternate receptors on liver to clear atherogenic lipoproteins > Direct anti-inflammatory and lesion regression effects on artery > Believed to be only product in development with both effects @ Does not
Slide 13: LipimetiX Operating Update
LipimetiX Operating Update @ Joint Venture formation/Transaction completed on August 3, 2012 @ AEM-28 drug material manufactured/received @ Pre-IND meeting letter filed with FDA @ Orphan Drug application approved November, 2012 by FDA for Homozygous Familial Hypercholesterolemia @ Preclinical Toxici
Slide 14: Capstone Summary
Capstone Summary @ Two Programs: > Apo E Mimetic Peptide AEM-28 in LDL Reduction >» AZX100 in Pulmonary Fibrosis — LRRI Results e Seeking Development Partner @ Continue CAPS Virtual Operation (1.5 Employees/ Consultants) to Preserve Cash Cash Resources Believed to be Adequate to Reach Value Mileston
Slide 15: Capstone Therapeutics contact
ALS CAPSTONE THERAPEUTICS OTCQB: CAPS www.capstonethx.com Capstone Therapeutics 1275 West Washington Street — Suite 101 Tempe, AZ 85281 (602) 286-5520