| COLUMN 1 | COLUMN 2 | COLUMN 3 | COLUMN 4 | COLUMN 5 | COLUMN 6 | COLUMN 7 | COLUMN 8 |
| | | VALUE | SHRS OR | SH/ | PUT/ | INVESTMENT | OTHER | VOTING AUTHORITY |
| NAME OF ISSUER | TITLE OF CLASS | CUSIP | (x$1000) | PRN AMT | PRN | CALL | DISCRETION | MANAGER | SOLE | SHARED | NONE |
| Acadia Pharmaceuticals Inc. | COM | 004225108 | 498,679 | 19,955,126 | SH | | SOLE | | 19,955,126 | 0 | 0 |
| Acceleron Pharma Inc. | COM | 00434H108 | 1,188 | 30,000 | SH | | SOLE | | 30,000 | 0 | 0 |
| Achillion | COM | 00448Q201 | 1,510 | 455,000 | SH | | SOLE | | 455,000 | 0 | 0 |
| Aegerion Pharmaceuticals | COM | 00767E102 | 35,480 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Aerie Pharmaceuticals | COM | 00771V108 | 5,388 | 300,000 | SH | | SOLE | | 300,000 | 0 | 0 |
| Agios Pharmaceuticals | COM | 00847X104 | 4,928 | 205,750 | SH | | SOLE | | 205,750 | 0 | 0 |
| Ambit Biosciences Corp. | COM | 02318X100 | 7,210 | 747,954 | SH | | SOLE | | 747,954 | 0 | 0 |
| Amicus Therapeutics | COM | 03152W109 | 1,210 | 515,072 | SH | | SOLE | | 515,072 | 0 | 0 |
| Anacor Pharmaceuticals | COM | 032420101 | 41,950 | 2,500,000 | SH | | SOLE | | 2,500,000 | 0 | 0 |
| Array Biopharma Inc. | COM | 04269X105 | 7,515 | 1,500,000 | SH | | SOLE | | 1,500,000 | 0 | 0 |
| Arrowhead Research Corp. | COM | 042797209 | 33,527 | 3,090,000 | SH | | SOLE | | 3,090,000 | 0 | 0 |
| Avanir Pharmaceuticals | COM Class A | 05348P401 | 18,240 | 5,428,591 | SH | | SOLE | | 5,428,591 | 0 | 0 |
| Biocryst Pharmaceuticals Inc. | COM | 09058V103 | 50,920 | 6,699,979 | SH | | SOLE | | 6,699,979 | 0 | 0 |
| BioDelivery Sciences Intl. Inc. | COM | 09060J106 | 4,983 | 846,005 | SH | | SOLE | | 846,005 | 0 | 0 |
| Biomarin Pharmaceuticals | COM | 09061G101 | 136,571 | 1,941,304 | SH | | SOLE | | 1,941,304 | 0 | 0 |
| Biota Pharmaceuticals | COM | 090694100 | 4,735 | 1,130,113 | SH | | SOLE | | 1,130,113 | 0 | 0 |
| Bluebird Bio Inc. | COM | 09609G100 | 2,401 | 114,461 | SH | | SOLE | | 114,461 | 0 | 0 |
| Cerus | COM | 157085101 | 54,537 | 8,455,306 | SH | | SOLE | | 8,455,306 | 0 | 0 |
| Chelsea Therapeutics | COM | 163428105 | 25,700 | 5,794,753 | SH | | SOLE | | 5,794,753 | 0 | 0 |
| Chemocentryx Inc. | COM | 16383L106 | 290 | 50,000 | SH | | SOLE | | 50,000 | 0 | 0 |
| Clovis Oncology | COM | 189464100 | 31,988 | 530,738 | SH | | SOLE | | 530,738 | 0 | 0 |
| Cyclacel Pharmaceuticals Pfd. Conv. Ex 6% | PFD CONV EX | 23254L207 | 193 | 20,979 | SH | | SOLE | | 20,979 | 0 | 0 |
| Derma Sciences | COM | 249827502 | 27,687 | 2,558,857 | SH | | SOLE | | 2,558,857 | 0 | 0 |
| Discovery Laboratories Inc. | COM | 254668403 | 8,367 | 3,718,617 | SH | | SOLE | | 3,718,617 | 0 | 0 |
| Dyax Corp. | COM | 26746E103 | 15,270 | 2,026,537 | SH | | SOLE | | 2,026,537 | 0 | 0 |
| Enanta Pharmaceuticals | COM | 29251M106 | 2,976 | 109,097 | SH | | SOLE | | 109,097 | 0 | 0 |
| Epizyme Inc. | COM | 29428V104 | 4,576 | 220,000 | SH | | SOLE | | 220,000 | 0 | 0 |
| Five Prime Therapeutics Inc. | COM | 33830X104 | 333 | 19,823 | SH | | SOLE | | 19,823 | 0 | 0 |
| Foundation Medicine Inc. | COM | 350465100 | 476 | 20,000 | SH | | SOLE | | 20,000 | 0 | 0 |
| Galectin Therapeutics Inc. | COM | 363225202 | 813 | 100,600 | SH | | SOLE | | 100,600 | 0 | 0 |
| Genomic Health Inc. | COM | 37244C101 | 399,560 | 13,650,835 | SH | | SOLE | | 13,650,835 | 0 | 0 |
| Geron Corp. | COM | 374163103 | 1,908 | 402,629 | SH | | SOLE | | 402,629 | 0 | 0 |
| Gilead Sciences Inc. | COM | 375558103 | 41,764 | 556,108 | SH | | SOLE | | 556,108 | 0 | 0 |
| GW Pharmaceuticals PLC | ADS | 36197T103 | 3,912 | 94,172 | SH | | SOLE | | 94,172 | 0 | 0 |
| Halozyme Therapeutics Inc. | COM | 40637H109 | 94,392 | 6,297,026 | SH | | SOLE | | 6,297,026 | 0 | 0 |
| Idera Pharmaceuticals Inc. | COM | 45168K306 | 14,685 | 3,171,765 | SH | | SOLE | | 3,171,765 | 0 | 0 |
| Incyte Corp. | COM | 45337C102 | 749,859 | 14,810,559 | SH | | SOLE | | 14,810,559 | 0 | 0 |
| Infinity Pharmaceuticals Inc. | COM | 45665303 | 8,883 | 643,256 | SH | | SOLE | | 643,256 | 0 | 0 |
| Insmed Inc. | COM | 457669307 | 13,538 | 796,378 | SH | | SOLE | | 796,378 | 0 | 0 |
| Intercept Pharmaceuticals, Inc. | COM | 45845P108 | 24,775 | 362,847 | SH | | SOLE | | 362,847 | 0 | 0 |
| Intermune Inc. | COM | 45884X103 | 2,210 | 150,000 | SH | | SOLE | | 150,000 | 0 | 0 |
| Ironwood Pharmaceuticals | COM | 46333X108 | 6,341 | 546,160 | SH | | SOLE | | 546,160 | 0 | 0 |
| Isis Pharmaceuticals | COM | 464330109 | 9,842 | 247,036 | SH | | SOLE | | 247,036 | 0 | 0 |
| Karyopharm Therapeutics | COM | 48576U106 | 1,406 | 61,330 | SH | | SOLE | | 61,330 | 0 | 0 |
| Kythera Biopharmaceuticals | COM | 501570105 | 11,698 | 313,191 | SH | | SOLE | | 313,191 | 0 | 0 |
| Ligand Pharmaceuticals Inc. | CLASS B | 53220K207 | 3,861 | 73,400 | SH | | SOLE | | 73,400 | 0 | 0 |
| Macrogenics | COM | 556099109 | 2,743 | 100,000 | SH | | SOLE | | 100,000 | 0 | 0 |
| Medivation Inc. | COM | 58501N101 | 25,421 | 398,331 | SH | | SOLE | | 398,331 | 0 | 0 |
| Mirati Therapeutics Inc. | COM | 60468T105 | 39,581 | 2,380,074 | SH | | SOLE | | 2,380,074 | 0 | 0 |
| Novavax | COM | 670002104 | 6,589 | 1,286,913 | SH | | SOLE | | 1,286,913 | 0 | 0 |
| Omeros Corp | COM | 682143102 | 6,869 | 608,404 | SH | | SOLE | | 608,404 | 0 | 0 |
| Ophthotech Corp. | COM | 683745103 | 3,333 | 103,040 | SH | | SOLE | | 103,040 | 0 | 0 |
| Orasure Technologies Inc. | COM | 68554V108 | 1,531 | 243,467 | SH | | SOLE | | 243,467 | 0 | 0 |
| Osiris Therapeutics Inc. | COM | 68827R108 | 6,035 | 375,282 | SH | | SOLE | | 375,282 | 0 | 0 |
| Pharmacyclics Inc. | COM | 716933106 | 922,319 | 8,719,218 | SH | | SOLE | | 8,719,218 | 0 | 0 |
| Portola Pharmaceuticals, Inc. | COM | 737010108 | 5,779 | 224,434 | SH | | SOLE | | 224,434 | 0 | 0 |
| Progenics Pharmaceuticals, Inc. | COM | 743187106 | 22,386 | 4,200,000 | SH | | SOLE | | 4,200,000 | 0 | 0 |
| Prothena Corp. PLC | SHS | G72800108 | 8,935 | 336,918 | SH | | SOLE | | 336,918 | 0 | 0 |
| Puma Biotechnology | COM | 74587V107 | 2,588 | 25,000 | SH | | SOLE | | 25,000 | 0 | 0 |
| QLT, Inc. | COM | 746927102 | 8,555 | 1,535,863 | SH | | SOLE | | 1,535,863 | 0 | 0 |
| Questcor Pharmaceuticals, Inc. | COM | 74835Y101 | 42,246 | 775,864 | SH | | SOLE | | 775,864 | 0 | 0 |
| Receptos Inc. | COM | 756207106 | 2,899 | 100,000 | SH | | SOLE | | 100,000 | 0 | 0 |
| Repros Therapeutics | COM | 76028H209 | 50,849 | 2,778,654 | SH | | SOLE | | 2,778,654 | 0 | 0 |
| Rigel Pharmaceuticals | COM | 766559603 | 1,425 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Salix Pharmaceuticals, Inc. | COM | 795435106 | 326 | 3,621 | SH | | SOLE | | 3,621 | 0 | 0 |
| Sangamo | COM | 800677106 | 5,894 | 424,308 | SH | | SOLE | | 424,308 | 0 | 0 |
| Seattle Genetics Inc. | COM | 812578102 | 827,156 | 20,735,926 | SH | | SOLE | | 20,735,926 | 0 | 0 |
| Stemline Therapeutics Inc. | COM | 85858C107 | 13,231 | 675,042 | SH | | SOLE | | 675,042 | 0 | 0 |
| Synageva Biopharma Corp. | COM | 87159A103 | 664,880 | 10,273,182 | SH | | SOLE | | 10,273,182 | 0 | 0 |
| Synergy Pharmaceuticals | COM | 871639308 | 14,685 | 2,608,271 | SH | | SOLE | | 2,608,271 | 0 | 0 |
| Synta Pharmaceuticals | COM | 87162T206 | 2,620 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Tekmire Pharmaceuticals Corp. | COM | 87911B209 | 3,985 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Tesaro Inc. | COM | 881569107 | 882 | 31,218 | SH | | SOLE | | 31,218 | 0 | 0 |
| TG Therapeutics | COM | 88322Q108 | 8,579 | 2,199,656 | SH | | SOLE | | 2,199,656 | 0 | 0 |
| Threshold Pharma | COM | 885807206 | 8,651 | 1,852,399 | SH | | SOLE | | 1,852,399 | 0 | 0 |
| United Therapeutics Corp. | COM | 91307C102 | 2,262 | 20,000 | SH | | SOLE | | 20,000 | 0 | 0 |
| Vanda Pharmaceuticals, Inc. | COM | 921659108 | 59,459 | 4,791,179 | SH | | SOLE | | 4,791,179 | 0 | 0 |
| Ventrus Biosciences, Inc. | COM | 922822101 | 4,645 | 1,215,840 | SH | | SOLE | | 1,215,840 | 0 | 0 |
| Xencor | COM | 98401F105 | 5,027 | 550,000 | SH | | SOLE | | 550,000 | 0 | 0 |
| Xenoport | COM | 98411C100 | 5,946 | 1,034,112 | SH | | SOLE | | 1,034,112 | 0 | 0 |
| Xoma Corp. | COM | 98419J107 | 155,008 | 23,032,372 | SH | | SOLE | | 23,032,372 | 0 | 0 |
| Ziopharm Oncology Inc. | COM | 98973P101 | 1,103 | 254,199 | SH | | SOLE | | 254,199 | 0 | 0 |
| Zogenix, Inc. | COM | 98978L105 | 9,463 | 2,751,000 | SH | | SOLE | | 2,751,000 | 0 | 0 |
| Auxilium 1.5% 7/15/2018 | CONV BONDS | 05334DAA5 | 96,343 | 87,090,000 | PRN | | SOLE | | 87,090,000 | 0 | 0 |
| Biomarin Pharmaceuticals Notes 1.875% 4/23/2017 | CONV BONDS | 09061GAD3 | 79,367 | 22,898,000 | PRN | | SOLE | | 22,898,000 | 0 | 0 |
| Biomarin Pharmaceuticals Notes 0.75% 10/15/2018 | CONV BONDS | 09061GAE1 | 13,262 | 12,500,000 | PRN | | SOLE | | 12,500,000 | 0 | 0 |
| Gilead 1.625% 5/1/16 | CONV BONDS | 375558AP8 | 70,910 | 21,500,000 | PRN | | SOLE | | 21,500,000 | 0 | 0 |
| Incyte Genomics Notes 4.75% 10/1/2015 144A | CONV BONDS | 45337CAH5 | 233,032 | 40,446,000 | PRN | | SOLE | | 40,446,000 | 0 | 0 |
| Incyte Genomics Notes 0.375% 11/15/2018 144A | CONV BONDS | 45337CAK8 | 310,045 | 259,000,000 | PRN | | SOLE | | 259,000,000 | 0 | 0 |
| Incyte Genomics Notes 1.25% 11/15/2020 144A | CONV BONDS | 45337CAL6 | 333,004 | 274,500,000 | PRN | | SOLE | | 274,500,000 | 0 | 0 |
| Intermune Inc Notes 5% 3/1/15 | CONV BONDS | 45884XAD5 | 19,526 | 16,860,000 | PRN | | SOLE | | 16,860,000 | 0 | 0 |
| Intermune Inc Notes 2.5% 12/15/17 | CONV BONDS | 45884XAF0 | 56,157 | 41,000,000 | PRN | | SOLE | | 41,000,000 | 0 | 0 |
| Medivation 2.625% 4/1/17 | CONV BONDS | 58501NAA9 | 57,806 | 39,500,000 | PRN | | SOLE | | 39,500,000 | 0 | 0 |
| Salix 2.75% 5/15/15 | CONV BONDS | 795435AC0 | 431,748 | 219,440,000 | PRN | | SOLE | | 219,440,000 | 0 | 0 |
| Salix 1.5% 3/15/19 | CONV BONDS | 795435AE6 | 22,369 | 15,000,000 | PRN | | SOLE | | 15,000,000 | 0 | 0 |
