| 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 | 507,121 | 20,481,442 | SH | | SOLE | | 20,481,442 | 0 | 0 |
| Acceleron Pharma Inc. | COM | 00434H108 | 870 | 28,765 | SH | | SOLE | | 28,765 | 0 | 0 |
| Achaogen Inc. | COM | 004449104 | 896 | 100,000 | SH | | SOLE | | 100,000 | 0 | 0 |
| Achillion | COM | 00448Q201 | 4,375 | 438,337 | SH | | SOLE | | 438,337 | 0 | 0 |
| Acorda Therapeutics, Inc. | COM | 00484M106 | 25,525 | 753,391 | SH | | SOLE | | 753,391 | 0 | 0 |
| Aerie Pharmaceuticals | COM | 00771V108 | 6,194 | 299,356 | SH | | SOLE | | 299,356 | 0 | 0 |
| Affimed Therapeutics B.V. | COM | N01045108 | 2,520 | 400,000 | SH | | SOLE | | 400,000 | 0 | 0 |
| Agios Pharmaceuticals | COM | 00847X104 | 10,423 | 169,893 | SH | | SOLE | | 169,893 | 0 | 0 |
| Alder Biopharmaceutical Inc. | COM | 014339105 | 1,944 | 153,350 | SH | | SOLE | | 153,350 | 0 | 0 |
| Alnylam Pharmaceuticals, Inc. | COM | 02043Q107 | 906 | 11,600 | SH | | SOLE | | 11,600 | 0 | 0 |
| Ambit Biosciences Corp. | COM | 02318X100 | 16,837 | 1,093,332 | SH | | SOLE | | 1,093,332 | 0 | 0 |
| Amicus Therapeutics | COM | 03152W109 | 2,866 | 481,697 | SH | | SOLE | | 481,697 | 0 | 0 |
| Anacor Pharmaceuticals | COM | 032420101 | 102,889 | 4,204,702 | SH | | SOLE | | 4,204,702 | 0 | 0 |
| Aquinox Pharmaceuticals, Inc. | COM | 03842B101 | 8,071 | 1,211,851 | SH | | SOLE | | 1,211,851 | 0 | 0 |
| Array Biopharma Inc. | COM | 04269X105 | 5,119 | 1,433,797 | SH | | SOLE | | 1,433,797 | 0 | 0 |
| Arrowhead Research Corp. | COM | 042797209 | 18,179 | 1,230,802 | SH | | SOLE | | 1,230,802 | 0 | 0 |
| Aurinia Pharmaceuticals, Inc. | COM | 05156V102 | 2,339 | 727,669 | SH | | SOLE | | 727,669 | 0 | 0 |
| Avanir Pharmaceuticals | COM | 05348P401 | 250,018 | 20,974,677 | SH | | SOLE | | 20,974,677 | 0 | 0 |
| Avanir Pharmaceuticals Inc C @ 1.0 OCT 14 | COM | 05348P401 | 58,106 | 4,874,700 | SH | Call | SOLE | | 4,874,700 | 0 | 0 |
| Avanir Pharmaceuticals Inc_FLEX C @ 0.9 OCT 14 | COM | 05348P401 | 14,722 | 1,235,100 | SH | Call | SOLE | | 1,235,100 | 0 | 0 |
| Avanir Pharmaceuticals Inc_FLEX C @ 1.0 DEC 14 | COM | 05348P401 | 38,697 | 3,246,400 | SH | Call | SOLE | | 3,246,400 | 0 | 0 |
| Biocryst Pharmaceuticals Inc. | COM | 09058V103 | 104,780 | 10,713,686 | SH | | SOLE | | 10,713,686 | 0 | 0 |
| BioDelivery Sciences Intl. Inc. | COM | 09060J106 | 3,589 | 210,021 | SH | | SOLE | | 210,021 | 0 | 0 |
| Biomarin Pharmaceuticals | COM | 09061G101 | 171,053 | 2,370,464 | SH | | SOLE | | 2,370,464 | 0 | 0 |
| Biota Pharmaceuticals | COM | 090694100 | 2,734 | 1,106,910 | SH | | SOLE | | 1,106,910 | 0 | 0 |
| Bluebird Bio Inc. | COM | 09609G100 | 5,382 | 150,000 | SH | | SOLE | | 150,000 | 0 | 0 |
| Catalyst Pharmaceuticals, Inc. | COM | 14888U101 | 22,295 | 6,715,462 | SH | | SOLE | | 6,715,462 | 0 | 0 |
| Celsus Therapeutics | SPONSORED ADR NE | 15119A202 | 4,111 | 673,887 | SH | | SOLE | | 673,887 | 0 | 0 |
| Cerus | COM | 157085101 | 47,880 | 11,940,178 | SH | | SOLE | | 11,940,178 | 0 | 0 |
| Chemocentryx Inc. | COM | 16383L106 | 225 | 50,000 | SH | | SOLE | | 50,000 | 0 | 0 |
| Concert Pharmaceuticals, Inc. | COM | 206022105 | 5,693 | 451,496 | SH | | SOLE | | 451,496 | 0 | 0 |
| Cyclacel Pharmaceuticals Pfd. Conv. Ex 6% | PFD CONV EX 6% | 23254L207 | 103 | 13,253 | SH | | SOLE | | 13,253 | 0 | 0 |
| Cytrx Corp. | COM | 232828509 | 3,429 | 1,350,000 | SH | | SOLE | | 1,350,000 | 0 | 0 |
| Derma Sciences | COM | 249827502 | 29,464 | 3,537,137 | SH | | SOLE | | 3,537,137 | 0 | 0 |
| Discovery Laboratories Inc. | COM | 254668403 | 6,720 | 3,652,117 | SH | | SOLE | | 3,652,117 | 0 | 0 |
| Dyax Corp. | COM | 26746E103 | 62,317 | 6,157,789 | SH | | SOLE | | 6,157,789 | 0 | 0 |
| Enanta Pharmaceuticals | COM | 29251M106 | 2,982 | 75,357 | SH | | SOLE | | 75,357 | 0 | 0 |
| Epizyme Inc. | COM | 29428V104 | 5,802 | 214,012 | SH | | SOLE | | 214,012 | 0 | 0 |
| Five Prime Therapeutics Inc. | COM | 33830X104 | 233 | 19,823 | SH | | SOLE | | 19,823 | 0 | 0 |
| Foamix Pharmaceuticals Ltd. | COM | M46135105 | 5,568 | 1,021,600 | SH | | SOLE | | 1,021,600 | 0 | 0 |
| Foundation Medicine Inc. | COM | 350465100 | 1,482 | 78,162 | SH | | SOLE | | 78,162 | 0 | 0 |
| Genomic Health Inc. | COM | 37244C101 | 386,590 | 13,655,618 | SH | | SOLE | | 13,655,618 | 0 | 0 |
| Geron Corp. | COM | 374163103 | 805 | 402,629 | SH | | SOLE | | 402,629 | 0 | 0 |
| Gilead Sciences Inc. | COM | 375558103 | 27,263 | 256,108 | SH | | SOLE | | 256,108 | 0 | 0 |
| Halozyme Therapeutics Inc. | COM | 40637H109 | 25,263 | 2,776,143 | SH | | SOLE | | 2,776,143 | 0 | 0 |
| Heron Therapeutics, Inc. | COM | 427746102 | 21,723 | 2,607,784 | SH | | SOLE | | 2,607,784 | 0 | 0 |
| Idera Pharmaceuticals Inc. | COM | 45168K306 | 3,708 | 1,619,258 | SH | | SOLE | | 1,619,258 | 0 | 0 |
| Ignyta | COM | 451731103 | 4,602 | 571,000 | SH | | SOLE | | 571,000 | 0 | 0 |
| Incyte Corp. | COM | 45337C102 | 728,175 | 14,845,559 | SH | | SOLE | | 14,845,559 | 0 | 0 |
| Infinity Pharmaceuticals Inc. | COM | 45665G303 | 4,187 | 312,025 | SH | | SOLE | | 312,025 | 0 | 0 |
| Insmed Inc. | COM | 457669307 | 14,457 | 1,107,850 | SH | | SOLE | | 1,107,850 | 0 | 0 |
| Ironwood Pharmaceuticals | COM | 46333X108 | 4,485 | 346,160 | SH | | SOLE | | 346,160 | 0 | 0 |
| Isis Pharmaceuticals, Inc. | COM | 464330109 | 3,739 | 96,303 | SH | | SOLE | | 96,303 | 0 | 0 |
| Karyopharm Therapeutics | COM | 48576U106 | 3,288 | 94,095 | SH | | SOLE | | 94,095 | 0 | 0 |
| Kythera Biopharmaceuticals | COM | 501570105 | 10,197 | 311,255 | SH | | SOLE | | 311,255 | 0 | 0 |
| La Jolla Pharmaceuticals, Inc. | COM | 503459604 | 4,052 | 421,631 | SH | | SOLE | | 421,631 | 0 | 0 |
| Ligand Pharmaceuticals | COM | 53220K504 | 3,449 | 73,400 | SH | | SOLE | | 73,400 | 0 | 0 |
| Lipocine Inc. | COM | 53630X104 | 3,055 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Loxo Oncology Inc. | COM | 548862101 | 1,313 | 100,000 | SH | | SOLE | | 100,000 | 0 | 0 |
| Macrogenics, Inc. | COM | 556099109 | 6,519 | 311,891 | SH | | SOLE | | 311,891 | 0 | 0 |
| Marinus Pharmaceuticals Inc. | COM | 56854Q101 | 1,323 | 204,476 | SH | | SOLE | | 204,476 | 0 | 0 |
| Mast Therapeutics, Inc. | COM | 576314108 | 1,671 | 3,000,000 | SH | | SOLE | | 3,000,000 | 0 | 0 |
| Mediwound Ltd. | COM | M68830104 | 1,418 | 225,000 | SH | | SOLE | | 225,000 | 0 | 0 |
| Mirati Therapeutics Inc. | COM | 60468T105 | 41,675 | 2,380,074 | SH | | SOLE | | 2,380,074 | 0 | 0 |
| Neurocrine Biosciences, Inc. | COM | 64125C109 | 8,690 | 554,590 | SH | | SOLE | | 554,590 | 0 | 0 |
| Novavax Inc. | COM | 670002104 | 5,101 | 1,223,362 | SH | | SOLE | | 1,223,362 | 0 | 0 |
| Omeros Corp. | COM | 682143102 | 10,288 | 808,775 | SH | | SOLE | | 808,775 | 0 | 0 |
| Ophthotech Corp. | COM | 683745103 | 1,432 | 36,776 | SH | | SOLE | | 36,776 | 0 | 0 |
| Orasure Technologies Inc. | COM | 68554V108 | 1,694 | 234,664 | SH | | SOLE | | 234,664 | 0 | 0 |
| Osiris Therapeutics Inc. | COM | 68827R108 | 6,429 | 510,606 | SH | | SOLE | | 510,606 | 0 | 0 |
| Pharmacyclics Inc. | COM | 716933106 | 1,133,974 | 9,656,599 | SH | | SOLE | | 9,656,599 | 0 | 0 |
| Progenics Pharmaceuticals, Inc. | COM | 743187106 | 23,094 | 4,449,797 | SH | | SOLE | | 4,449,797 | 0 | 0 |
| ProQR Therapeutics NV | COM | N71542109 | 6,876 | 400,000 | SH | | SOLE | | 400,000 | 0 | 0 |
| QLT Inc. | COM | 746927102 | 6,942 | 1,535,863 | SH | | SOLE | | 1,535,863 | 0 | 0 |
| Receptos Inc. | COM | 756207106 | 1,484 | 23,900 | SH | | SOLE | | 23,900 | 0 | 0 |
| Repros Therapeutics | COM | 76028H209 | 27,509 | 2,778,654 | SH | | SOLE | | 2,778,654 | 0 | 0 |
| Rigel Pharmaceuticals | COM | 766559603 | 935 | 481,972 | SH | | SOLE | | 481,972 | 0 | 0 |
| Sage Therapeutics Inc. | COM | 78667J108 | 2,363 | 75,000 | SH | | SOLE | | 75,000 | 0 | 0 |
| Salix Pharmaceuticals | COM | 795435106 | 1,347 | 8,621 | SH | | SOLE | | 8,621 | 0 | 0 |
| Sangamo Biosceiences, Inc. | COM | 800677106 | 9,327 | 864,856 | SH | | SOLE | | 864,856 | 0 | 0 |
| Seattle Genetics, Inc. | COM | 812578102 | 835,648 | 22,475,729 | SH | | SOLE | | 22,475,729 | 0 | 0 |
| Stemline Therapeutics Inc. | COM | 85858C107 | 4,220 | 338,671 | SH | | SOLE | | 338,671 | 0 | 0 |
| Synageva Biopharma Corp. | COM | 87159A103 | 733,225 | 10,660,432 | SH | | SOLE | | 10,660,432 | 0 | 0 |
| Synergy Pharmaceuticals | COM | 871639308 | 2,710 | 973,245 | SH | | SOLE | | 973,245 | 0 | 0 |
| Synta Pharmaceuticals | COM | 87162T206 | 1,505 | 500,000 | SH | | SOLE | | 500,000 | 0 | 0 |
| Tekmire Pharmaceuticals Corp. | COM | 87911B209 | 10,235 | 484,156 | SH | | SOLE | | 484,156 | 0 | 0 |
| Tesaro Inc. | COM | 881569107 | 840 | 31,218 | SH | | SOLE | | 31,218 | 0 | 0 |
| TG Therapeutics | COM | 88322Q108 | 21,877 | 2,050,313 | SH | | SOLE | | 2,050,313 | 0 | 0 |
| Threshold Pharma | COM | 885807206 | 7,791 | 2,158,141 | SH | | SOLE | | 2,158,141 | 0 | 0 |
| Ultragenyx Pharmaceuticals | COM | 90400D108 | 8,490 | 150,000 | SH | | SOLE | | 150,000 | 0 | 0 |
| Uniquere B.V. | COM | N90064101 | 284 | 30,672 | SH | | SOLE | | 30,672 | 0 | 0 |
| Vanda Pharmaceuticals, Inc. | COM | 921659108 | 45,383 | 4,372,153 | SH | | SOLE | | 4,372,153 | 0 | 0 |
| Versartis Inc. | COM | 92529L102 | 23,663 | 1,246,089 | SH | | SOLE | | 1,246,089 | 0 | 0 |
| Xencor | COM | 98401F105 | 5,049 | 542,363 | SH | | SOLE | | 542,363 | 0 | 0 |
| Xenoport | COM | 98411C100 | 36,669 | 6,815,777 | SH | | SOLE | | 6,815,777 | 0 | 0 |
| Xoma Corp. | COM | 98419J107 | 97,131 | 23,071,472 | SH | | SOLE | | 23,071,472 | 0 | 0 |
| Ziopharm Oncology Inc. | COM | 98973P101 | 646 | 244,619 | SH | | SOLE | | 244,619 | 0 | 0 |
| Zogenix, Inc. | COM | 98978L105 | 2,703 | 2,350,400 | SH | | SOLE | | 2,350,400 | 0 | 0 |
| Celladon Corp | COM | 15117E107 | 3,923 | 375,000 | SH | | SOLE | | 375,000 | 0 | 0 |
| Mallinckrodt PUB LTD CO | COM | G5785G107 | 18,197 | 201,856 | SH | | SOLE | | 201,856 | 0 | 0 |
| Acorda Therapeutics Notes 1.75% 6/15/2021 | CONV BONDS | 00484MAA4 | 62,050 | 60,000,000 | PRN | | SOLE | | 60,000,000 | 0 | 0 |
| Biomarin Pharmaceuticals Notes 1.875% 4/23/2017 | CONV BONDS | 09061GAD3 | 81,355 | 22,898,000 | PRN | | SOLE | | 22,898,000 | 0 | 0 |
| Biomarin Pharmaceuticals Notes 0.75% 10/15/2018 | CONV BONDS | 09061GAE1 | 13,203 | 12,500,000 | PRN | | SOLE | | 12,500,000 | 0 | 0 |
| Gilead 1.625% 5/1/16 | CONV BONDS | 375558AP8 | 100,393 | 21,500,000 | PRN | | SOLE | | 21,500,000 | 0 | 0 |
| Incyte Corporation Notes 4.75% 10/1/2015 | CONV BONDS | 45337CAJ1 | 225,284 | 40,446,000 | PRN | | SOLE | | 40,446,000 | 0 | 0 |
| Incyte Corporation Notes 0.375% 11/15/2018 | CONV BONDS | 45337CAK8 | 308,103 | 259,000,000 | PRN | | SOLE | | 259,000,000 | 0 | 0 |
| Incyte Corporation Notes 1.25% 11/15/2020 | CONV BONDS | 45337CAL6 | 334,033 | 274,500,000 | PRN | | SOLE | | 274,500,000 | 0 | 0 |
| Medivation 2.625% 4/1/17 | CONV BONDS | 58501NAA9 | 67,747 | 34,720,000 | PRN | | SOLE | | 34,720,000 | 0 | 0 |
| Salix 2.75% 5/15/15 | CONV BONDS | 795435AC0 | 737,019 | 219,440,000 | PRN | | SOLE | | 219,440,000 | 0 | 0 |
| Salix 1.5% 3/15/19 | CONV BONDS | 795435AE6 | 36,237 | 15,000,000 | PRN | | SOLE | | 15,000,000 | 0 | 0 |
