Monday, May 11, 2009
Phoenix Business Journal - by Angela Gonzales
Capstone Therapeutics nearly doubled its losses during the first quarter 2009, while laying off seven people.
Capstone, which recently changed its name from OrthoLogic Corp., reported a net loss of $4.1 million for first-quarter 2009, compared with a loss of $2.7 million for the same period in 2008.
Company officials attribute the deeper loss to increased costs associated with clinical trials for AZX100. The product is being tested to prevent and reduce hypertrophic, or heavy scarring after a wound, keloid scarring, and as a way to treat pulmonary disease and intimal hyperplasia, or thickening of blood vessels.
Even with the increased spending, Capstone ended the first quarter of 2009 with $43.6 million in cash and investments. Capstone let go five full time and two part-time workers and now has 22 employees.
The layoffs will provide more capital within the 2009 budget for clinical trials, Jock Holliman, executive chairman of Capstone, told investors in a conference call on May 11.
The company’s stock trades on Nasdaq under the symbol CAPS. It last traded at 70 cents per share. It’s 52-week range is 35 cents and $1.09.
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