Item 1. Report to Shareholders
T. Rowe Price Health Sciences Fund
- --------------------------------------------------------------------------------
Certified Financials
T. Rowe Price Health Sciences Fund
- --------------------------------------------------------------------------------
Certified Financials (Unaudited)
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
6 Months Year
Ended Ended
6/30/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98
NET ASSET VALUE
Beginning of
period $ 14.51 $ 20.08 $ 21.70 $ 15.93 $ 16.01 $ 13.66
Investment activities
Net investment
income (loss) (0.05) (0.11) (0.11) (0.03) (0.04) (0.04)
Net realized
and unrealized
gain (loss) 3.47 (5.46) (1.20) 8.28 1.22 3.05
Total from
investment
activities 3.42 (5.57) (1.31) 8.25 1.18 3.01
Distributions
Net realized
gain -- -- (0.31) (2.48) (1.26) (0.66)
NET ASSET VALUE
End of
period $ 17.93 $ 14.51 $ 20.08 $ 21.70 $ 15.93 $ 16.01
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Ratios/Supplemental Data
Total
return^ 23.57% (27.74)% (5.97)% 52.19% 7.97% 22.37%
Ratio of total
expenses to
average net
assets 1.05%! 1.04% 1.02% 0.98% 1.11% 1.16%
Ratio of net
investment
income (loss)
to average
net assets (0.61)%! (0.64)% (0.60)% (0.22)% (0.25)% (0.25)%
Portfolio
turnover
rate 47.1%! 62.7% 74.6% 110.6% 81.9% 85.7%
Net assets,
end of period
(in thousands) $892,662 $677,956 $960,787 $971,867 $302,510 $316,573
^ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
! Annualized
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Health Sciences Fund
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Certified Financials (Unaudited) June 30, 2003
Statement of Net Assets Shares Value
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In thousands
Common Stocks and Warrants 99.4%
BIOTECHNOLOGY 40.3%
International Biotechnology 0.4%
Actelion (CHF) * 50,000 $ 3,337
3,337
Other Biotechnology 4.1%
Alexion Pharmaceutical * 210,000 3,581
Amylin Pharmaceuticals * 220,000 4,816
Cubist Pharmaceuticals * 550,000 5,863
Esperion Therapeutics * 250,000 4,897
Exelixis * 825,000 5,725
Insmed, Warrants, 5/31/05 *+(misc. symbol) 250,048 0
Ligand Pharmaceuticals, Class B * 224,300 3,048
Myriad Genetics * 125,000 1,701
Nektar Therapeutics * 1,600 15
NeoRx * 250,000 847
Regeneron Pharmaceuticals * 145,000 2,284
Tularik * 80,000 795
Vicuron Pharmaceuticals * 175,000 2,482
ViroPharma * 200,000 520
XOMA * 55,900 298
36,872
U.S. Major - Biotechnology 35.8%
Abgenix *!! 475,000 4,983
Alkermes * 1,075,000 11,556
Amgen *!! 650,000 43,186
Biogen *!! 75,000 2,850
Cephalon * 725,000 29,841
CV Therapeutics * 275,000 8,157
Genentech *!! 230,000 16,588
Gilead Sciences *!! 875,000 48,632
Human Genome Sciences * 375,000 4,770
IDEC Pharmaceuticals *!! 525,000 17,850
Imclone Systems *!! 423,000 13,375
Medicines Company *!! 675,000 13,291
MedImmune *!! 650,000 23,640
Millennium Pharmaceuticals * 425,000 6,685
Neurocrine Biosciences *!! 350,000 $ 17,479
NPS Pharmaceuticals * 494,500 12,036
OSI Pharmaceuticals * 190,000 6,120
Protein Design Labs * 150,000 2,097
Transkaryotic Therapies * 300,000 3,462
Trimeris *!! 625,000 28,550
Vertex Pharmaceuticals * 310,000 4,526
319,674
Total Biotechnology 359,883
LIFE SCIENCES 1.4%
Life Sciences 1.4%
Invitrogen * 75,000 2,878
Symyx Technologies * 400,000 6,528
Waters Corporation *!! 100,000 2,913
Total Life Sciences 12,319
PHARMACEUTICALS 24.8%
International Pharmaceuticals 1.1%
Fujisawa Pharmaceutical (JPY) 150,000 2,816
Sanofi-Synthelabo (EUR) 125,000 7,333
10,149
U.S. Major- Pharmaceutical 23.7%
Abbott Laboratories !! 450,000 19,692
Allergan !! 225,000 17,347
AstraZeneca ADR 140,000 5,708
Barr Laboratories * 135,000 8,842
Biovail *!! 315,000 14,824
Eli Lilly !! 200,000 13,794
Forest Labs *!! 400,000 21,900
Indevus Pharmaceuticals * 450,000 2,808
IVAX * 50,000 893
Johnson & Johnson 190,000 9,823
Noven Pharmaceuticals * 300,000 3,072
Pfizer 1,200,000 40,980
Salix Pharmaceuticals * 500,000 5,245
Schering-Plough 255,000 4,743
Teva Pharmaceutical ADR !! 290,000 16,510
Wyeth !! 550,000 $ 25,052
211,233
Total Pharmaceuticals 221,382
PRODUCTS & DEVICES 7.3%
Implants 7.3%
Advanced Neuromodulation Systems * 125,000 6,471
Aspect Medical Systems * 425,000 3,137
Baxter International 50,000 1,300
Biomet 90,000 2,579
Boston Scientific * 375,000 22,912
C. R. Bard 105,000 7,488
CTI Molecular Imaging * 25,000 473
EPIX Medical * 276,200 3,908
Fischer Imaging *! 590,000 2,915
Guidant !! 25,000 1,110
Medtronic 50,000 2,399
St. Jude Medical * 115,000 6,612
Stryker 50,000 3,468
Total Products & Devices 64,772
SERVICES 21.6%
Distribution 5.5%
AmerisourceBergen !! 80,000 5,548
Cardinal Health !! 195,000 12,538
Omnicare !! 925,000 31,256
49,342
Other Services 1.3%
Laboratory Corporation of America * 375,000 11,306
11,306
Payors 13.1%
Anthem *!! 610,000 47,061
UnitedHealth Group 955,000 47,989
Wellpoint Health Networks * 255,000 21,497
116,547
Providers 1.7%
Davita * 125,000 3,348
HCA 200,000 6,408
Triad Hospitals * 225,000 $ 5,584
15,340
Total Services 192,535
Total Miscellaneous Common Stocks 4.0% 36,060
Total Common Stocks and Warrants (Cost $745,864) 886,951
Preferred Stocks 0.2%
Advanced Medicine, Series D *+(misc. symbol) 264,454 2,380
Total Preferred Stocks (Cost $2,380) 2,380
Convertible Preferred Stocks 0.2%
Control Delivery Systems,
8.00%, Series A *+(misc. symbol) 37,216 1,500
Total Convertible Preferred
Stocks (Cost $2,000) 1,500
Options Written (1.8%)
Abbott Labs, Call, 11/22/2003 @ $47.50 * (75,000) (80)
Abgenix, Call, 7/19/2003 @ $12.50 * (50,000) (9)
Allergan
Call, 7/19/2003 @ $80.00 * (50,000) (50)
Put, 10/18/2003 @ $85.00 * (25,000) (58)
AmerisourceBergen
Call
8/16/2003 @ $55.00 * (25,000) (366)
8/16/2003 @ $60.00 * (55,000) (547)
Amgen
Call
10/18/2003 @ $65.00 * (125,000) (600)
7/19/2003 @ $60.00 * (200,000) (1,231)
7/19/2003 @ $65.00 * (150,000) (304)
Put
7/19/2003 @ $60.00 * (25,000) (6)
7/19/2003 @ $65.00 * (50,000) (52)
Amylin Pharmaceuticals, Put,
10/18/2003 @ $25.00 * (40,000) (192)
Anthem
Call, 9/20/2003 @ $70.00 * (15,000) (135)
Put, 9/20/2003 @ $70.00 * (10,000) (15)
Baxter International, Put,
1/17/2004 @ $25.00 * (50,000) (106)
Biogen
Call, 10/18/2003 @ $40.00 * (75,000) $ (210)
Put, 10/18/2003 @ $40.00 * (25,000) (116)
Biovail, Call, 7/19/2003 @ $50.00 * (50,000) (34)
Boston Scientific
Put
11/22/2003 @ $65.00 * (50,000) (382)
8/16/2003 @ $65.00 * (25,000) (135)
Bristol-Myers Squibb
Put
1/17/2004 @ $25.00 * (40,000) (60)
1/17/2004 @ $27.50 * (10,000) (27)
1/17/2004 @ $30.00 * (85,000) (374)
Cardinal Health
Call
8/16/2003 @ $65.00 * (25,000) (70)
9/20/2003 @ $60.00 * (30,000) (197)
9/20/2003 @ $70.00 * (75,000) (110)
Cephalon
Put
1/17/2004 @ $40.00 * (25,000) (136)
11/22/2003 @ $40.00 * (25,000) (113)
Eli Lilly
Call
10/18/2003 @ $75.00 * (25,000) (44)
7/19/2003 @ $55.00 * (50,400) (708)
7/19/2003 @ $60.00 * (25,000) (229)
7/19/2003 @ $65.00 * (50,000) (222)
7/19/2003 @ $70.00 * (25,000) (27)
Forest Laboratories
Call
11/22/2003 @ $55.00 * (50,000) (240)
11/22/2003 @ $60.00 * (25,000) (64)
8/16/2003 @ $57.50 * (25,000) (39)
8/16/2003 @ $60.00 * (25,000) (21)
Put
11/22/2003 @ $50.00 * (10,000) (29)
8/16/2003 @ $50.00 * (10,000) (12)
Genentech
Call
7/19/2003 @ $75.00 * (25,000) $ (44)
7/19/2003 @ $80.00 * (100,000) (57)
Put
1/17/2004 @ $55.00 * (100,000) (262)
1/17/2004 @ $60.00 * (50,000) (193)
1/17/2004 @ $65.00 * (50,000) (275)
7/19/2003 @ $70.00 * (15,000) (30)
Gilead Sciences
Call
7/19/2003 @ $55.00 * (25,000) (61)
7/19/2003 @ $60.00 * (25,000) (14)
8/16/2003 @ $45.00 * (50,000) (575)
Put
7/19/2003 @ $50.00 * (10,000) (6)
8/16/2003 @ $50.00 * (20,000) (34)
Guidant
Put
1/17/2004 @ $40.00 * (25,000) (65)
1/17/2004 @ $45.00 * (60,000) (282)
Call
11/22/2003 @ $35.00 * (25,000) (46)
8/16/2003 @ $35.00 * (50,000) (42)
IDEC Pharmaceuticals
Call
10/18/2003 @ $40.00 * (50,000) (69)
7/19/2003 @ $35.00 * (25,000) (29)
7/19/2003 @ $40.00 * (100,000) (32)
8/16/2003 @ $40.00 * (100,000) (70)
Put
10/18/2003 @ $35.00 * (25,000) (92)
7/19/2003 @ $40.00 * (50,000) (320)
Imclone Systems
Put, 8/16/2003 @ $30.00 * (25,000) (65)
Call, 8/16/2003 @ $22.50 * (25,000) (244)
Invitrogen, Put, 11/22/2003 @ $40.00 * (25,000) (121)
Medicines Company, Call,
7/19/2003 @ $20.00 * (50,000) (51)
Medimmune
Call
12/20/2003 @ $42.50 * (25,000) $ (42)
7/19/2003 @ $35.00 * (25,000) (54)
9/20/2003 @ $37.50 * (300,000) (682)
9/20/2003 @ $40.00 * (125,000) (159)
Put
7/19/2003 @ $35.00 * (25,000) (21)
9/20/2003 @ $35.00 * (25,000) (57)
Merck, Put, 1/17/2004 @ $55.00 * (15,000) (36)
Millennium Pharmaceuticals,
Put, 11/22/2003 @ $17.50 * (25,000) (95)
Neurocrine Biosciences
Call
11/22/2003 @ $60.00 * (25,000) (46)
8/16/2003 @ $50.00 * (75,000) (231)
8/16/2003 @ $60.00 * (25,000) (11)
Put, 8/16/2003 @ $50.00 * (15,000) (43)
Omnicare, Call, 9/20/2003 @ $35.00 * (50,000) (53)
Teva Pharmaceutical, Call,
9/20/2003 @ $45.00 * (50,000) (620)
Trimeris
Call
10/18/2003 @ $50.00 * (100,000) (240)
10/18/2003 @ $55.00 * (80,000) (84)
7/19/2003 @ $45.00 * (30,000) (70)
Universal Health Services,
Put, 10/18/2003 @ $45.00 * (100,000) (625)
Waters Corporation, Call,
8/16/2003 @ $25.00 * (50,000) (222)
Wyeth
Call
10/18/2003 @ $40.00 * (200,000) (1,330)
7/19/2003 @ $40.00 * (100,000) (555)
Put, 10/18/2003 @ $45.00 * (25,000) (74)
Total Options Written (Cost $(11,535)) (15,779)
Short-Term Investments 2.6%
Money Market Funds 2.6%
T. Rowe Price Reserve
Investment Fund, 1.16% # 22,800,818 22,801
Total Short-Term Investments (Cost $22,801) 22,801
Value
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In thousands
Total Investments in Securities
100.6% of Net Assets (Cost $761,510) $ 897,853
Other Assets Less Liabilities (5,191)
NET ASSETS $ 892,662
---------------
Net Assets Consist of:
Undistributed net investment
income (loss) $ (2,262)
Undistributed net
realized gain (loss) (125,178)
Net unrealized gain (loss) 136,343
Paid-in-capital applicable
to 49,778,831 shares of
$0.0001 par value capital
stock outstanding;
1,000,000,000 shares
authorized 883,759
NET ASSETS $ 892,662
---------------
NET ASSET VALUE PER SHARE $ 17.93
---------------
# Seven-day yield
* Non-income producing
!! All or a portion of this security is pledged to cover written call options
at June 30, 2003
! Affiliated company - See Note 2.
+ Security contains restrictions as to public resale pursuant to the
Securities Act of 1933 and related rules - total of such securities at
period-end amounts to $3,880,000 and represents 0.4% of net assets
(misc. symbol) Security valued by the Fund's Board of Directors
ADR American Depository Receipts
CHF Swiss franc
EUR Euro
JPY Japanese yen
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Health Sciences Fund
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Certified Financials (Unaudited)
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
6 Months
Ended
6/30/03
Investment Income (Loss)
Income
Dividend $ 1,429
Income distributions from mutual funds 128
Total income 1,557
Expenses
Investment management 2,464
Shareholder servicing 1,180
Custody and accounting 96
Prospectus and shareholder reports 85
Registration 9
Legal and audit 8
Directors 6
Total expenses 3,848
Expenses paid indirectly (29)
Net expenses 3,819
Net investment income (loss) (2,262)
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (36,506)
Written options 1,720
Foreign currency transactions (29)
Net realized gain (loss) (34,815)
Change in net unrealized gain (loss)
Securities 203,200
Written options (3,867)
Other assets and liabilities
denominated in foreign currencies (1)
Change in net unrealized gain (loss) 199,332
Net realized and unrealized gain (loss) 164,517
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 162,255
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The accompanying notes are an integral part of these financial statements.
T. Rowe Price Health Sciences Fund
- --------------------------------------------------------------------------------
Certified Financials (Unaudited)
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
6/30/03 12/31/02
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ (2,262) $ (5,066)
Net realized gain (loss) (34,815) (79,012)
Change in net unrealized
gain (loss) 199,332 (189,723)
Increase (decrease) in net
assets from operations 162,255 (273,801)
Capital share transactions *
Shares sold 115,354 222,520
Shares redeemed (62,903) (231,550)
Increase (decrease) in net
assets from capital
share transactions 52,451 (9,030)
Net Assets
Increase (decrease) during period 214,706 (282,831)
Beginning of period 677,956 960,787
End of period $ 892,662 $ 677,956
-------------------------------------
*Share information
Shares sold 7,120 13,063
Shares redeemed (4,064) (14,185)
Increase (decrease) in shares outstanding 3,056 (1,122)
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Health Sciences Fund
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Certified Financials (Unaudited) June 30, 2003
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Health Sciences Fund, Inc. (the fund) is registered under the
Investment Company Act of 1940 (the 1940 Act) as a diversified, open-end
management investment company and commenced operations on December 29, 1995. The
fund seeks long-term capital appreciation.
The accompanying financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America, which
require the use of estimates made by fund management.
Valuation
Investments are valued at the close of the New York Stock Exchange (NYSE),
normally 4 p.m. ET, each day that the NYSE is open for business. Equity
securities listed or regularly traded on a securities exchange or in the
over-the-counter market are valued at the last quoted sale price, or official
closing price for certain markets, at the time the valuations are made. A
security that is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such security.
Listed securities not traded on a particular day are valued at the mean of the
latest bid and ask prices for domestic securities and the last quoted sale price
for international securities.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation. Purchased and written options are
valued at the mean of the closing bid and ask prices.
Other investments and those for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Most foreign markets close before the NYSE. Developments that could affect the
values of securities that occur between the close of a foreign market and the
close of the NYSE normally will not be reflected in security valuations.
However, if such developments are so significant that they will, in the judgment
of the officers of the fund, clearly and materially affect the value of
securities, the previous closing prices may be adjusted to reflect the fair
value of the securities as of the close of the NYSE, as determined in good faith
by or under the supervision of the officers of the fund, as authorized by the
Board of Directors.
Currency Translation
Assets, including investments, and liabilities denominated in foreign currencies
are translated into U.S. dollar values each day at the prevailing exchange rate,
using the mean of the bid and ask prices of such currencies against U.S. dollars
as quoted by a major bank. Purchases and sales of securities, income, and
expenses are translated into U.S. dollars at the prevailing exchange rate on the
date of the transaction. The effect of changes in foreign currency exchange
rates on realized and unrealized security gains and losses is reflected as a
component of such gains and losses.
Expenses Paid Indirectly
Certain security trades are directed to brokers who have agreed to rebate a
portion of the related commission to the fund to pay fund expenses.
Additionally, credits earned on temporarily uninvested cash balances at the
custodian are used to reduce the fund's custody charges. Total expenses in the
accompanying statement of operations are presented before reduction for rebates
and credits, which totaled $29,000 and $0, respectively, for the six months
ended June 30, 2003.
Other
Income and expenses are recorded on the accrual basis. Investment transactions
are accounted for on the trade date. Realized gains and losses are reported on
the identified cost basis. Dividend income and distributions to shareholders are
recorded by the fund on the ex-dividend date.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Options
Call and put options give the holder the right to purchase or sell,
respectively, a security at a specified price on a certain date. Risks arise
from possible illiquidity of the options market and from movements in security
values. Options are reflected in the accompanying Statement of Net Assets at
market value. Transactions in options written and related premiums received
during the six months ended June 30, 2003, were as follows:
- --------------------------------------------------------------------------------
Number of
Contracts Premiums
Outstanding at beginning of period 30,000 $ 5,107,000
Written 116,000 26,419,000
Exercised -- (41,000)
Expired (14,000) (1,424,000)
Closed (88,000) (18,526,000)
Outstanding at end of period 44,000 $ 11,535,000
Affiliated Companies
The fund may invest in certain securities that are considered affiliated
companies. As defined by the 1940 Act, an affiliated company is one in which the
fund owns 5% or more of the outstanding voting securities. At June 30, 2003, the
value of affiliated companies totaled $2,915,000, representing 0.3% of the value
of the fund's investments in securities.
Other
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $220,588,000 and $174,032,000, respectively, for the six months ended
June 30, 2003.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute to
shareholders all of its taxable income and gains. Federal income tax regulations
differ from generally accepted accounting principles; therefore, distributions
determined in accordance with tax regulations may differ in amount or character
from net investment income and realized gains for financial reporting purposes.
Financial reporting records are adjusted for permanent book/tax differences to
reflect tax character. Temporary differences are not adjusted. The amount and
character of tax-basis distributions and composition of net assets are finalized
at fiscal year-end; accordingly, tax-basis balances have not been determined as
of June 30, 2003.
For tax purposes, the fund has elected to treat net capital losses realized
between November 1 and December 31 of each year as occurring on the first day of
the following tax year; consequently, $14,759,000 of realized losses recognized
for financial reporting purposes in the year ended December 31, 2002 were
recognized for tax purposes on January 1, 2003. Further, the fund intends to
retain realized gains to the extent of available capital loss carryforwards. As
of December 31, 2002, the fund had $75,224,000 of unused capital loss
carryforwards, of which $9,998,000 expire in 2009, and $65,226,000 expire in
2010.
At June 30, 2003, the cost of investments for federal income tax purposes was
$761,510,000. Net unrealized gain aggregated $136,343,000 at period-end, of
which $209,411,000 related to appreciated investments and $73,068,000 related
to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price
Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The
investment management agreement between the fund and the manager provides for an
annual investment management fee, which is computed daily and paid monthly. The
fee consists of an individual fund fee, equal to 0.35% of the fund's average
daily net assets, and the fund's pro-rata share of a group fee. The group fee is
calculated based on the combined net assets of certain mutual funds sponsored by
Price Associates (the group) applied to a graduated fee schedule, with rates
ranging from 0.48% for the first $1 billion of assets to 0.295% for assets in
excess of $120 billion. The fund's portion of the group fee is determined by the
ratio of its net assets to those of the group. At June 30, 2003, the effective
annual group fee rate was 0.32%, and investment management fee payable totaled
$489,000.
In addition, the fund has entered into service agreements with Price Associates
and two wholly owned subsidiaries of Price Associates (collectively, Price).
Price Associates computes the daily share price and maintains the financial
records of the fund. T. Rowe Price Services, Inc. provides shareholder and
administrative services in its capacity as the fund's transfer and dividend
disbursing agent. T. Rowe Price Retirement Plan Services, Inc. provides
subaccounting and recordkeeping services for certain retirement accounts
invested in the fund. Expenses incurred pursuant to these service agreements
totaled $841,000 for the six months ended June 30, 2003, of which $170,000 was
payable at period-end.
Additionally, the fund is one of several mutual funds in which certain college
savings plans managed by Price Associates may invest. As approved by the fund's
Board of Directors, shareholder servicing costs associated with each college
savings plan are borne by the fund in proportion to the average daily value of
its shares owned by the college savings plan. For the six months ended June 30,
2003, the fund was charged $19,000 for shareholder servicing costs related to
the college savings plans, of which $15,000 was for services provided by Price
and $5,000 was payable at period-end. At June 30, 2003, approximately 0.7% of
the outstanding shares of the fund were held by college savings plans.
The fund may invest in the T. Rowe Price Reserve Investment Fund and T. Rowe
Price Government Reserve Investment Fund (collectively, the Reserve Funds),
open-end management investment companies managed by Price Associates. The
Reserve Funds are offered as cash management options only to mutual funds,
trusts, and other accounts managed by Price Associates and/or its affiliates,
and are not available to the public. The Reserve Funds pay no investment
management fees. Distributions from the Reserve Funds to the fund for the six
months ended June 30, 2003, totaled $128,000.
Item 2. Code of Ethics.
Not required at this time.
Item 3. Audit Committee Financial Expert.
Not required at this time.
Item 4. Principal Accountant Fees and Services.
Not required at this time.
Item 5. Audit Committee of Listed Registrants.
Not required at this time.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. [Reserved]
Item 9. Controls and Procedures
(a) The registrant's principal executive officer and principal financial officer
have evaluated the registrant's disclosure controls and procedures within 90
days of this filing and have concluded that the registrant's disclosure controls
and procedures were effective, as of that date, in ensuring that information
required to be disclosed by the registrant in this Form N-CSR was recorded,
processed, summarized, and reported timely.
(b) The registrant's principal executive officer and principal financial officer
are aware of no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 10. Exhibits.
(a)(1) Not required at this time.
(a)(2) Separate certifications by the registrant's principal executive officer
and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of
1940, are attached.
(b) A certification by the registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940,
is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
T. Rowe Price Health Sciences Fund, Inc.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date August 13, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date August 13, 2003
By /s/ Joseph A. Carrier
Joseph A. Carrier
Principal Financial Officer
Date August 12, 2003