Ticker	Issuer	Shares	Value	%	Est. Cost	Unrealized	Class	CUSIP
—	Pharmacyclics Inc.	10,771,138	$856M	16.9%	$79.47	—	COM	716933106
—	Seattle Genetics Inc.	19,322,947	$608M	12.0%	$31.46	—	COM	812578102
—	Genomic Health Inc.	13,650,835	$433M	8.6%	$31.71	—	COM	37244C101
—	Incyte Genomics Notes 4.75% 10/1/2015	157,758,000	$402M	7.9%	$2.55	—	CONV BONDS	45337CAH5
—	Synageva Biopharma Corp.	9,223,182	$387M	7.7%	$41.98	—	COM	87159A103
ACAD	Acadia Pharmaceuticals Inc.	19,955,126	$362M	7.2%	$13.77	0.0%	COM	004225108
—	Salix 2.75% 5/15/15	219,440,000	$334M	6.6%	$1.52	—	CONV BONDS	795435AC0
INCY	Incyte Corp.	14,810,559	$326M	6.4%	$21.85	0.0%	COM	45337C102
—	Viropharma Inc.	8,528,603	$244M	4.8%	$28.65	—	COM	928241108
—	Auxilium 1.5% 7/15/2018	91,590,000	$88.1M	1.7%	$0.96	—	CONV BONDS	05334DAA5
—	Xoma Corp.	20,274,581	$73.6M	1.5%	$3.63	—	COM	98419J107
GILD	Gilead Sciences Inc.	1,245,800	$63.87M	1.3%	$36.21	0.0%	COM	375558103
—	Biomarin Pharmaceuticals Notes 1.875% 4/23/2017	22,898,000	$63.22M	1.3%	$2.76	—	CONV BONDS	09061GAD3
—	Aegerion Pharmaceuticals	924,343	$58.55M	1.2%	$63.34	—	COM	00767E102
HALO	Halozyme Therapeutics Inc.	6,553,150	$52.1M	1.0%	$6.37	0.0%	COM	40637H109
—	Repros Therapeutics	2,778,654	$51.27M	1.0%	$18.45	—	COM	76028H209
—	Medivation 2.625% 4/1/17	39,500,000	$50.05M	1.0%	$1.27	—	CONV BONDS	58501NAA9
—	Gilead 1.625% 5/1/16	21,500,000	$48.66M	1.0%	$2.26	—	CONV BONDS	375558AP8
—	Intermune Inc Notes 2.5% 12/15/17	41,000,000	$43.9M	0.9%	$1.07	—	CONV BONDS	45884XAF0
BMRN	Biomarin Pharmaceuticals	783,311	$43.66M	0.9%	$62.32	0.0%	COM	09061G101
CERS	Cerus	8,455,306	$37.37M	0.7%	$4.84	0.0%	COM	157085101
—	Clovis Oncology	525,113	$35.17M	0.7%	$66.98	—	COM	189464100
VNDA	Vanda Pharmaceuticals, Inc.	3,966,179	$32.05M	0.6%	$6.73	0.0%	COM	921659108
—	Ariad Pharmaceuticals Inc.	1,450,000	$25.36M	0.5%	$17.49	—	COM	04033A100
—	Stemline Therapeutics Inc.	900,000	$21.46M	0.4%	$23.84	—	COM	85858C107
—	Intercept Pharmaceuticals, Inc.	462,847	$20.75M	0.4%	$44.84	—	COM	45845P108
—	Medivation Inc.	398,331	$19.6M	0.4%	$49.20	—	COM	58501N101
—	Progenics Pharmaceuticals, Inc.	4,200,000	$18.73M	0.4%	$4.46	—	COM	743187106
—	Derma Sciences	1,358,857	$18.14M	0.4%	$13.35	—	COM	249827502
—	Intermune Inc Notes 5% 3/1/15	16,860,000	$17.76M	0.4%	$1.05	—	CONV BONDS	45884XAD5
—	Avanir Pharmaceuticals	3,578,591	$16.46M	0.3%	$4.60	—	COM	05348P401
INFIQ	Infinity Pharmaceuticals Inc.	1,016,433	$16.46M	0.3%	$30.95	0.0%	COM	45665G303
—	Questcor Pharmaceuticals, Inc.	315,846	$14.35M	0.3%	$45.44	—	COM	74835Y101
—	Synergy Pharmaceuticals	2,608,271	$11.27M	0.2%	$4.32	—	COM	871639308
—	Chelsea Therapeutics	4,775,787	$10.98M	0.2%	$2.30	—	COM	163428105
—	Portola Pharmaceuticals, Inc.	399,914	$9.826M	0.2%	$24.57	—	COM	737010108
INSM	Insmed Inc.	795,803	$9.518M	0.2%	$10.22	0.0%	COM	457669307
IRWD	Ironwood Pharmaceuticals	922,160	$9.157M	0.2%	$12.12	0.0%	COM	46333X108
BCRX	Biocryst Pharmaceuticals Inc.	5,563,615	$8.623M	0.2%	$1.73	0.0%	COM	09058V103
—	Threshold Pharma	1,595,048	$8.39M	0.2%	$5.26	—	COM	885807107
—	Synta Pharmaceuticals	1,399,040	$6.981M	0.1%	$4.99	—	COM	87162T206
—	Array Biopharma Inc.	1,500,000	$6.81M	0.1%	$4.54	—	COM	04269X105
—	QLT, Inc.	1,535,863	$6.742M	0.1%	$4.39	—	COM	746927102
—	Isis Pharmaceuticals	247,036	$6.638M	0.1%	$26.87	—	COM	464330109
—	Chemocentryx Inc.	375,000	$5.303M	0.1%	$14.14	—	COM	16383L106
—	Ambit Biosciences Corp.	747,962	$5.236M	0.1%	$7.00	—	COM	02318X100
—	Xenoport	1,034,112	$5.119M	0.1%	$4.95	—	COM	98411C100
—	Anacor Pharmaceuticals	876,463	$4.899M	0.1%	$5.59	—	COM	32420101
PRTA	Prothena Corp. PLC	369,650	$4.772M	0.1%	$9.30	0.0%	COM	G72800108
—	Kythera Biopharmaceuticals	165,000	$4.463M	0.1%	$27.05	—	COM	501570105
—	Achillion	455,000	$3.722M	0.1%	$8.18	—	COM	00448Q201
PBYI	Puma Biotechnology	83,333	$3.697M	0.1%	$35.25	0.0%	COM	74587V107
—	MEI Pharma, Inc.	515,612	$3.677M	0.1%	$7.13	—	COM	55279B103
—	BioDelivery Sciences Intl. Inc.	900,505	$3.656M	0.1%	$4.06	—	COM	09060J106
—	Zogenix, Inc.	2,001,000	$3.422M	0.1%	$1.71	—	COM	98978L105
—	Salix Pharmaceuticals, Inc.	45,571	$3.015M	0.1%	$66.16	—	COM	795435106
—	Idera Pharmaceuticals Inc.	4,500,000	$2.948M	0.1%	$0.66	—	COM	45168K306
—	Ventrus Biosciences, Inc.	1,215,840	$2.918M	0.1%	$2.40	—	COM	922822101
—	Ligand Pharmaceuticals Inc.	73,400	$2.745M	0.1%	$37.40	—	CLASS B	53220K207
—	Discovery Laboratories Inc.	1,518,617	$2.308M	0.0%	$1.52	—	COM	254668403
ENTA	Enanta Pharmaceuticals	125,000	$2.214M	0.0%	$19.50	0.0%	COM	29251M106
—	Arqule Inc.	879,805	$2.041M	0.0%	$2.32	—	COM	04269E107
—	Cytrx Corp.	1,000,000	$2M	0.0%	$2.00	—	COM	232828509
—	Receptos Inc.	100,000	$1.989M	0.0%	$19.89	—	COM	756207106
GERN	Geron Corp.	1,000,000	$1.5M	0.0%	$1.08	0.0%	COM	374163103
FOLD	Amicus Therapeutics	515,072	$1.2M	0.0%	$3.07	0.0%	COM	03152W109
—	Tesaro Inc.	31,218	$1.022M	0.0%	$32.74	—	COM	881569107
—	Biodel Inc.	229,885	$961K	0.0%	$4.18	—	COM	09064M204
OSUR	Orasure Technologies Inc.	243,467	$945K	0.0%	$4.46	0.0%	COM	68554V108
—	Lpath Inc.	200,000	$880K	0.0%	$4.40	—	COM	548910306
—	Epizyme Inc.	20,000	$563K	0.0%	$28.15	—	COM	29428V104
—	Ziopharm Oncology Inc.	254,199	$536K	0.0%	$2.11	—	COM	98973P101
—	Cubist Pharmaceuticals Inc.	5,000	$241K	0.0%	$48.20	—	COM	229678107
—	Cyclacel Pharmaceuticals Pfd. Conv. Ex 6%	20,979	$151K	0.0%	$7.20	—	PFD CONV EX	23254L207
—	Aradigm Corp.	100,000	$16,000	0.0%	$0.16	—	COM	038505301