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

 UNITED STATES

SECURITIES AND EXCHANGE
COMMISSION

Washington, D.C. 20549

SCHEDULE 13G

(Rule 13d-102)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO RULES 13d-1(b), (c),
AND (d) AND AMENDMENTS THERETO FILED

PURSUANT TO RULE 13d-2(b)

(Amendment No. 9)¹

Check the appropriate box
to designate the rule pursuant to which this Schedule is filed:

Capstone Therapeutics Corp., a Delaware corporation (the
“Issuer”).

1275 W. Washington Street

Suite 104

Tempe, AZ 85281

Biotechnology Value Fund, L.P. (“BVF”)

1 Sansome Street, 30^th Floor

San Francisco, California 94104

Citizenship: Delaware

Biotechnology Value Fund II, L.P. (“BVF2”)

1 Sansome Street, 30^th Floor

San Francisco, California 94104

Citizenship: Delaware

BVF Investments, L.L.C. (“BVLLC”)

1 Sansome Street, 30^th Floor

San Francisco, California 94104

Citizenship: Delaware

BVF Partners L.P. (“Partners”)

1 Sansome Street, 30^th Floor

San Francisco, California 94104

Citizenship: Delaware

BVF Inc.

1 Sansome Street, 30^th Floor

San Francisco, California 94104

Citizenship: Delaware

Mark N. Lampert (“Mr. Lampert”)

1 Sansome Street, 30^th Floor

San Francisco, California 94104

Citizenship: United States

Each of the foregoing is referred
to as a “Reporting Person” and collectively as the “Reporting Persons.”

Common Stock, par value $0.0005 per share (the “Common
Stock”)

14068E109

As of the close of business on July
18, 2017, (i) BVF beneficially owned 1,377,652 shares of Common Stock, (ii) BVF2 beneficially owned 890,487 shares of Common Stock,
and (iii) BVLLC beneficially owned 0 shares of Common Stock.

Partners, as the general partner of
BVF and BVF2, and the manager of BVLLC, may be deemed to beneficially own the 2,714,491 shares of Common Stock beneficially owned
in the aggregate by BVF, BVF2, BVLLC, and certain Partners managed accounts (the “Partners Managed Accounts”), including
446,352 shares of Common Stock held in the Partners Managed Accounts.

BVF Inc., as the general partner of
Partners, may be deemed to beneficially own the 2,714,491 shares of Common Stock beneficially owned by Partners.

Mr. Lampert, as a director and officer
of BVF Inc., may be deemed to beneficially own the 2,714,491 shares of Common Stock beneficially owned by BVF Inc.

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.

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).

See Cover Pages Items 5-9.

See Cover Pages Items 5-9.

See Cover Pages Items 5-9.

See Cover Pages Items 5-9.

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].

Not Applicable.

Not Applicable.

See Exhibit 99.1 to Amendment No. 8
to Schedule 13G filed with the Securities and Exchange Commission on February 16, 2016.

Not Applicable.

By signing below each of
the undersigned certifies that, to the best of its knowledge and belief, the securities referred to above were not acquired and
are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were
not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

SIGNATURE

After reasonable inquiry
and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement
is true, complete and correct.

Dated: July 18, 2017