Capstone Therapeutics (Nasdaq:CAPS) (the "Company") announced today its plan to preserve cash during ongoing discussions with potential partners regarding AZX100 in dermal scarring. The Company will reduce staff from its current 18 full-time employees to a core of four individuals covering required regulatory and financial functions at substantially reduced compensation.
"Capstone is observing its commitment to stockholders to preserve cash by moving into a 'hibernation' mode," said Jock Holliman, Executive Chairman. "We promised we would pursue - for a reasonable period of time - a joint development alliance for AZX100. The AZX100 program in dermal scarring has, in fact, generated genuine interest in the marketplace. However, there remains uncertainty regarding the timing of such an alliance, and there are no guarantees that a partnering deal can be consummated in what we consider to be a timely manner. This cash-preservation plan will allow the Company to reduce costs, operate 'virtually' and continue partnering discussions and negotiations in an efficient fashion. Should an alliance be secured, we will reexamine our structure accordingly."
About Capstone Therapeutics
Capstone Therapeutics is a biotechnology company involved in the development 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 safety and signals of efficacy in Phase 2 clinical trials, as well as its safety and effectiveness in pre-clinical models, 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 certain worldwide rights to Chrysalin.
Capstone's corporate headquarters are in Tempe, Arizona. For more information, please visit the Company's website: www.capstonethx.com.