The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
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