13G Filing: Biotechnology Value Fund LP and Capstone Therapeutics Corp (CAPS)

The foregoing should not be construed
in and of itself as an admission by any Reporting Person as to beneficial ownership of any shares of Common Stock owned by another
Reporting Person. Each of Partners, BVF Inc. and Mr. Lampert disclaims beneficial ownership of the shares of Common Stock beneficially
owned by BVF, BVF2, BVLLC and the Partners Managed Accounts, and the filing of this statement shall not be construed as an admission
that any such person or entity is the beneficial owner of any such securities.

(b)

Percent of class:

The following
percentages are based on 54,385,411 shares of Common Stock outstanding as of July 17, 2017, which is the sum of (i) 40,885,411
shares of Common Stock outstanding, as disclosed in the Issuer’s Quarterly Report filed on Form 10-Q with the Securities
and Exchange Commission on May 4, 2017, and (ii) 13,500,000 shares of Common Stock issued pursuant to an agreement, as described
in Issuer’s Current Report filed on Form 8-K on July 17, 2017.

As of the close of business on July
18, 2017 (i) BVF beneficially owned approximately 2.5% of the outstanding shares of Common Stock, (ii) BVF2 beneficially owned
approximately 1.6% of the outstanding shares of Common Stock, (iii) BVLLC beneficially owned 0% of the outstanding shares of Common
Stock, and (iv) each of Partners, BVF Inc. and Mr. Lampert may be deemed to beneficially own approximately 4.99% of the outstanding
shares of Common Stock (less than 1% of which is held in the Partners Managed Accounts).

(c)

Number of shares as to which such person has:

(i)

Sole power to vote or to direct the vote

See Cover Pages Items 5-9.

(ii)

Shared power to vote or to direct the vote

See Cover Pages Items 5-9.

(iii)

Sole power to dispose or to direct the disposition of

See Cover Pages Items 5-9.

(iv)

Shared power to dispose or to direct the disposition of

See Cover Pages Items 5-9.

Item 5.

Ownership of Five Percent or Less of a Class.

If this statement is being filed to
report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent
of the class of securities, check the following [X].

Item 6.

Ownership of More than Five Percent on Behalf of Another Person.

Not Applicable.