| 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 |
| Aquinox Pharmaceuticals, Inc. | COM | 03842B101 | 15,427 | 1,211,851 | SH | | SOLE | | 1,211,851 | 0 | 0 |
| Celsus Therapeutics | COM | 15119A202 | 4,374 | 673,887 | SH | | SOLE | | 673,887 | 0 | 0 |
| Heron Therapeutics, Inc. | COM | 427746102 | 30,153 | 2,167,784 | SH | | SOLE | | 2,167,784 | 0 | 0 |
| Ignyta | COM | 451731103 | 4,739 | 571,000 | SH | | SOLE | | 571,000 | 0 | 0 |
| La Jolla Pharmaceuticals, Inc. | COM | 503459604 | 2,394 | 221,631 | SH | | SOLE | | 221,631 | 0 | 0 |
| Retrophin Inc. | COM | 761299106 | 4,194 | 197,178 | SH | | SOLE | | 197,178 | 0 | 0 |
| Ultragenyx Pharmaceuticals | COM | 90400D108 | 4,889 | 100,000 | SH | | SOLE | | 100,000 | 0 | 0 |
| Uniquere B.V. | COM | N90064101 | 477 | 30,672 | SH | | SOLE | | 30,672 | 0 | 0 |
| Acadia Pharmaceuticals Inc. | COM | 004225108 | 498,313 | 20,481,442 | SH | | SOLE | | 20,481,442 | 0 | 0 |
| Acceleron Pharma Inc. | COM | 00434H108 | 992 | 28,765 | SH | | SOLE | | 28,765 | 0 | 0 |
| Achaogen Inc. | COM | 004449104 | 1,546 | 100,000 | SH | | SOLE | | 100,000 | 0 | 0 |
| Achillion | COM | 00448Q201 | 1,442 | 438,337 | SH | | SOLE | | 438,337 | 0 | 0 |
| Acorda Therapeutics, Inc. | COM | 00484M106 | 37,910 | 1,000,000 | SH | | SOLE | | 1,000,000 | 0 | 0 |
| Aegerion Pharmaceuticals | COM | 00767E102 | 23,702 | 513,922 | SH | | SOLE | | 513,922 | 0 | 0 |
| Aerie Pharmaceuticals | COM | 00771V108 | 6,343 | 299,356 | SH | | SOLE | | 299,356 | 0 | 0 |
| Agios Pharmaceuticals | COM | 00847X104 | 7,826 | 199,893 | SH | | SOLE | | 199,893 | 0 | 0 |
| Alnylam Pharmaceuticals, Inc. | COM | 02043Q107 | 779 | 11,600 | SH | | SOLE | | 11,600 | 0 | 0 |
| Ambit Biosciences Corp. | COM | 02318X100 | 6,821 | 747,954 | SH | | SOLE | | 747,954 | 0 | 0 |
| Amicus Therapeutics | COM | 03152W109 | 997 | 481,697 | SH | | SOLE | | 481,697 | 0 | 0 |
| Anacor Pharmaceuticals | COM | 032420101 | 61,937 | 3,095,318 | SH | | SOLE | | 3,095,318 | 0 | 0 |
| Array Biopharma Inc. | COM | 04269X105 | 6,739 | 1,433,797 | SH | | SOLE | | 1,433,797 | 0 | 0 |
| Arrowhead Research Corp. | COM | 042797209 | 12,020 | 732,062 | SH | | SOLE | | 732,062 | 0 | 0 |
| Auxilium Pharmaceuticals, Inc. | COM | 05334D107 | 1,591 | 58,544 | SH | | SOLE | | 58,544 | 0 | 0 |
| Avanir Pharmaceuticals | COM Class A | 05348P401 | 21,250 | 5,790,139 | SH | | SOLE | | 5,790,139 | 0 | 0 |
| Biocryst Pharmaceuticals Inc. | COM | 09058V103 | 62,073 | 5,867,031 | SH | | SOLE | | 5,867,031 | 0 | 0 |
| BioDelivery Sciences Intl. Inc. | COM | 09060J106 | 3,553 | 421,005 | SH | | SOLE | | 421,005 | 0 | 0 |
| Biomarin Pharmaceuticals | COM | 09061G101 | 128,455 | 1,883,230 | SH | | SOLE | | 1,883,230 | 0 | 0 |
| Biota Pharmaceuticals | COM | 090694100 | 6,763 | 1,106,910 | SH | | SOLE | | 1,106,910 | 0 | 0 |
| Bluebird Bio Inc. | COM | 09609G100 | 4,508 | 198,260 | SH | | SOLE | | 198,260 | 0 | 0 |
| Catalyst Pharmaceuticals, Inc. | COM | 14888U101 | 1,288 | 569,853 | SH | | SOLE | | 569,853 | 0 | 0 |
| Cerus | COM | 157085101 | 40,585 | 8,455,306 | SH | | SOLE | | 8,455,306 | 0 | 0 |
| Chelsea Therapeutics | COM | 163428105 | 37,317 | 6,760,394 | SH | | SOLE | | 6,760,394 | 0 | 0 |
| Chemocentryx Inc. | COM | 16383L106 | 332 | 50,000 | SH | | SOLE | | 50,000 | 0 | 0 |
| Clovis Oncology | COM | 189464100 | 36,712 | 529,990 | SH | | SOLE | | 529,990 | 0 | 0 |
| Cyclacel Pharmaceuticals Pfd. Conv. Ex 6% | PFD CONV EX | 23254L207 | 113 | 13,253 | SH | | SOLE | | 13,253 | 0 | 0 |
| Cytrx Corp. | COM | 232828509 | 4,712 | 1,350,000 | SH | | SOLE | | 1,350,000 | 0 | 0 |
| Derma Sciences | COM | 249827502 | 44,851 | 3,537,137 | SH | | SOLE | | 3,537,137 | 0 | 0 |
| Discovery Laboratories Inc. | COM | 254668403 | 7,852 | 3,652,117 | SH | | SOLE | | 3,652,117 | 0 | 0 |
| Dyax Corp. | COM | 26746E103 | 22,735 | 2,531,766 | SH | | SOLE | | 2,531,766 | 0 | 0 |
| Enanta Pharmaceuticals | COM | 29251M106 | 3,237 | 80,957 | SH | | SOLE | | 80,957 | 0 | 0 |
| Epizyme Inc. | COM | 29428V104 | 4,873 | 214,012 | SH | | SOLE | | 214,012 | 0 | 0 |
| Five Prime Therapeutics Inc. | COM | 33830X104 | 390 | 19,823 | SH | | SOLE | | 19,823 | 0 | 0 |
| Furiex Pharmaceuticals, Inc. | COM | 36106P101 | 3,507 | 40,309 | SH | | SOLE | | 40,309 | 0 | 0 |
| Galectin Therapeutics Inc. | COM | 363225202 | 7,655 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Genomic Health Inc. | COM | 37244C101 | 359,650 | 13,654,150 | SH | | SOLE | | 13,654,150 | 0 | 0 |
| Geron Corp. | COM | 374163103 | 837 | 402,629 | SH | | SOLE | | 402,629 | 0 | 0 |
| Gilead Sciences Inc. | COM | 375558103 | 39,406 | 556,108 | SH | | SOLE | | 556,108 | 0 | 0 |
| Halozyme Therapeutics Inc. | COM | 40637H109 | 72,366 | 5,698,139 | SH | | SOLE | | 5,698,139 | 0 | 0 |
| Idera Pharmaceuticals Inc. | COM | 45168K306 | 6,581 | 1,613,076 | SH | | SOLE | | 1,613,076 | 0 | 0 |
| Incyte Corp. | COM | 45337C102 | 793,999 | 14,835,559 | SH | | SOLE | | 14,835,559 | 0 | 0 |
| Infinity Pharmaceuticals Inc. | COM | 45665G303 | 7,420 | 624,050 | SH | | SOLE | | 624,050 | 0 | 0 |
| Insmed Inc. | COM | 457669307 | 10,549 | 554,050 | SH | | SOLE | | 554,050 | 0 | 0 |
| Intercept Pharmaceuticals, Inc. | COM | 45845P108 | 84,550 | 256,375 | SH | | SOLE | | 256,375 | 0 | 0 |
| Intermune Inc. | COM | 45884X103 | 144,752 | 4,324,843 | SH | | SOLE | | 4,324,843 | 0 | 0 |
| Ironwood Pharmaceuticals | COM | 46333X108 | 5,497 | 446,160 | SH | | SOLE | | 446,160 | 0 | 0 |
| Isis Pharmaceuticals, Inc. | COM | 464330109 | 4,161 | 96,303 | SH | | SOLE | | 96,303 | 0 | 0 |
| Karyopharm Therapeutics | COM | 48576U106 | 1,825 | 59,095 | SH | | SOLE | | 59,095 | 0 | 0 |
| Kythera Biopharmaceuticals | COM | 501570105 | 12,375 | 311,255 | SH | | SOLE | | 311,255 | 0 | 0 |
| Ligand Pharmaceuticals | CLASS B | 53220K504 | 4,937 | 73,400 | SH | | SOLE | | 73,400 | 0 | 0 |
| Macrogenics, Inc. | COM | 556099109 | 2,676 | 96,165 | SH | | SOLE | | 96,165 | 0 | 0 |
| Mast Therapeutics, Inc. | COM | 576314108 | 2,040 | 3,000,000 | SH | | SOLE | | 3,000,000 | 0 | 0 |
| Mirati Therapeutics Inc. | COM | 60468T105 | 45,388 | 2,380,074 | SH | | SOLE | | 2,380,074 | 0 | 0 |
| Neurocrine Biosciences, Inc. | COM | 64125C109 | 7,211 | 447,874 | SH | | SOLE | | 447,874 | 0 | 0 |
| Novavax Inc. | COM | 670002104 | 5,542 | 1,223,362 | SH | | SOLE | | 1,223,362 | 0 | 0 |
| Omeros Corp. | COM | 682143102 | 9,098 | 753,804 | SH | | SOLE | | 753,804 | 0 | 0 |
| Ophthotech Corp. | COM | 683745103 | 1,314 | 36,776 | SH | | SOLE | | 36,776 | 0 | 0 |
| Orasure Technologies Inc. | COM | 68554V108 | 1,870 | 234,664 | SH | | SOLE | | 234,664 | 0 | 0 |
| Osiris Therapeutics Inc. | COM | 68827R108 | 4,747 | 361,530 | SH | | SOLE | | 361,530 | 0 | 0 |
| Pharmacyclics Inc. | COM | 716933106 | 875,711 | 8,737,888 | SH | | SOLE | | 8,737,888 | 0 | 0 |
| Portola Pharmaceuticals, Inc. | COM | 737010108 | 4,729 | 182,591 | SH | | SOLE | | 182,591 | 0 | 0 |
| Progenics Pharmaceuticals, Inc. | COM | 743187106 | 18,200 | 4,449,797 | SH | | SOLE | | 4,449,797 | 0 | 0 |
| Prothena Corp. PLC | SHS | G72800108 | 8,817 | 230,142 | SH | | SOLE | | 230,142 | 0 | 0 |
| QLT Inc. | COM | 746927102 | 8,539 | 1,535,863 | SH | | SOLE | | 1,535,863 | 0 | 0 |
| Questcor Pharmaceuticals, Inc. | COM | 74835Y101 | 46,603 | 717,745 | SH | | SOLE | | 717,745 | 0 | 0 |
| Receptos Inc. | COM | 756207106 | 1,002 | 23,900 | SH | | SOLE | | 23,900 | 0 | 0 |
| Regado | COM | 75874Q107 | 5,008 | 400,000 | SH | | SOLE | | 400,000 | 0 | 0 |
| Repros Therapeutics | COM | 76028H209 | 49,293 | 2,778,654 | SH | | SOLE | | 2,778,654 | 0 | 0 |
| Rigel Pharmaceuticals | COM | 766559603 | 1,870 | 481,972 | SH | | SOLE | | 481,972 | 0 | 0 |
| Salix Pharmaceuticals | COM | 795435106 | 375 | 3,621 | SH | | SOLE | | 3,621 | 0 | 0 |
| Sangamo Biosceiences, Inc. | COM | 800677106 | 9,452 | 522,764 | SH | | SOLE | | 522,764 | 0 | 0 |
| Seattle Genetics, Inc. | COM | 812578102 | 944,887 | 20,739,426 | SH | | SOLE | | 20,739,426 | 0 | 0 |
| Stemline Therapeutics Inc. | COM | 85858C107 | 6,895 | 338,671 | SH | | SOLE | | 338,671 | 0 | 0 |
| Synageva Biopharma Corp. | COM | 87159A103 | 883,480 | 10,648,182 | SH | | SOLE | | 10,648,182 | 0 | 0 |
| Synergy Pharmaceuticals | COM | 871639308 | 9,336 | 1,758,271 | SH | | SOLE | | 1,758,271 | 0 | 0 |
| Synta Pharmaceuticals | COM | 87162T206 | 2,155 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Tekmire Pharmaceuticals Corp. | COM | 87911B209 | 10,405 | 484,156 | SH | | SOLE | | 484,156 | 0 | 0 |
| Tesaro Inc. | COM | 881569107 | 920 | 31,218 | SH | | SOLE | | 31,218 | 0 | 0 |
| TG Therapeutics | COM | 88322Q108 | 14,911 | 2,160,965 | SH | | SOLE | | 2,160,965 | 0 | 0 |
| Threshold Pharma | COM | 885807206 | 8,693 | 1,826,358 | SH | | SOLE | | 1,826,358 | 0 | 0 |
| Vanda Pharmaceuticals, Inc. | COM | 921659108 | 72,243 | 4,445,696 | SH | | SOLE | | 4,445,696 | 0 | 0 |
| Ventrus Biosciences, Inc. | COM | 922822101 | 535 | 417,690 | SH | | SOLE | | 417,690 | 0 | 0 |
| Xencor | COM | 98401F105 | 6,362 | 542,363 | SH | | SOLE | | 542,363 | 0 | 0 |
| Xenoport | COM | 98411C100 | 20,856 | 4,034,112 | SH | | SOLE | | 4,034,112 | 0 | 0 |
| Xoma Corp. | COM | 98419J107 | 120,130 | 23,057,572 | SH | | SOLE | | 23,057,572 | 0 | 0 |
| Ziopharm Oncology Inc. | COM | 98973P101 | 1,120 | 244,619 | SH | | SOLE | | 244,619 | 0 | 0 |
| Zogenix, Inc. | COM | 98978L105 | 6,687 | 2,350,400 | SH | | SOLE | | 2,350,400 | 0 | 0 |
| Auxilium 1.5% 7/15/2018 | CONV BONDS | 05334DAA5 | 128,796 | 97,990,000 | PRN | | SOLE | | 97,990,000 | 0 | 0 |
| Biomarin Pharmaceuticals Notes 1.875% 4/23/2017 | CONV BONDS | 09061GAD3 | 77,127 | 22,898,000 | PRN | | SOLE | | 22,898,000 | 0 | 0 |
| Biomarin Pharmaceuticals Notes 0.75% 10/15/2018 | CONV BONDS | 09061GAE1 | 13,699 | 12,500,000 | PRN | | SOLE | | 12,500,000 | 0 | 0 |
| Gilead 1.625% 5/1/16 | CONV BONDS | 375558AP8 | 66,903 | 21,500,000 | PRN | | SOLE | | 21,500,000 | 0 | 0 |
| Incyte Genomics Notes 4.75% 10/1/2015 144A | CONV BONDS | 45337CAJ1 | 245,887 | 40,446,000 | PRN | | SOLE | | 40,446,000 | 0 | 0 |
| Incyte Genomics Notes 0.375% 11/15/2018 144A | CONV BONDS | 45337CAK8 | 326,745 | 259,000,000 | PRN | | SOLE | | 259,000,000 | 0 | 0 |
| Incyte Genomics Notes 1.25% 11/15/2020 144A | CONV BONDS | 45337CAL6 | 350,417 | 274,500,000 | PRN | | SOLE | | 274,500,000 | 0 | 0 |
| Intermune Inc Notes 5% 3/1/15 | CONV BONDS | 45884XAD5 | 30,590 | 16,860,000 | PRN | | SOLE | | 16,860,000 | 0 | 0 |
| Intermune Inc Notes 2.5% 12/15/17 | CONV BONDS | 45884XAF0 | 107,856 | 41,000,000 | PRN | | SOLE | | 41,000,000 | 0 | 0 |
| Medivation 2.625% 4/1/17 | CONV BONDS | 58501NAA9 | 56,288 | 39,500,000 | PRN | | SOLE | | 39,500,000 | 0 | 0 |
| Salix 2.75% 5/15/15 | CONV BONDS | 795435AC0 | 491,957 | 219,440,000 | PRN | | SOLE | | 219,440,000 | 0 | 0 |
| Salix 1.5% 3/15/19 | CONV BONDS | 795435AE6 | 25,289 | 15,000,000 | PRN | | SOLE | | 15,000,000 | 0 | 0 |
