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 498,679 19,955,126 SH   SOLE   19,955,126 0 0
Acceleron Pharma Inc. COM 00434H108 1,188 30,000 SH   SOLE   30,000 0 0
Achillion COM 00448Q201 1,510 455,000 SH   SOLE   455,000 0 0
Aegerion Pharmaceuticals COM 00767E102 35,480 500,000 SH   SOLE   500,000 0 0
Aerie Pharmaceuticals COM 00771V108 5,388 300,000 SH   SOLE   300,000 0 0
Agios Pharmaceuticals COM 00847X104 4,928 205,750 SH   SOLE   205,750 0 0
Ambit Biosciences Corp. COM 02318X100 7,210 747,954 SH   SOLE   747,954 0 0
Amicus Therapeutics COM 03152W109 1,210 515,072 SH   SOLE   515,072 0 0
Anacor Pharmaceuticals COM 032420101 41,950 2,500,000 SH   SOLE   2,500,000 0 0
Array Biopharma Inc. COM 04269X105 7,515 1,500,000 SH   SOLE   1,500,000 0 0
Arrowhead Research Corp. COM 042797209 33,527 3,090,000 SH   SOLE   3,090,000 0 0
Avanir Pharmaceuticals COM Class A 05348P401 18,240 5,428,591 SH   SOLE   5,428,591 0 0
Biocryst Pharmaceuticals Inc. COM 09058V103 50,920 6,699,979 SH   SOLE   6,699,979 0 0
BioDelivery Sciences Intl. Inc. COM 09060J106 4,983 846,005 SH   SOLE   846,005 0 0
Biomarin Pharmaceuticals COM 09061G101 136,571 1,941,304 SH   SOLE   1,941,304 0 0
Biota Pharmaceuticals COM 090694100 4,735 1,130,113 SH   SOLE   1,130,113 0 0
Bluebird Bio Inc. COM 09609G100 2,401 114,461 SH   SOLE   114,461 0 0
Cerus COM 157085101 54,537 8,455,306 SH   SOLE   8,455,306 0 0
Chelsea Therapeutics COM 163428105 25,700 5,794,753 SH   SOLE   5,794,753 0 0
Chemocentryx Inc. COM 16383L106 290 50,000 SH   SOLE   50,000 0 0
Clovis Oncology COM 189464100 31,988 530,738 SH   SOLE   530,738 0 0
Cyclacel Pharmaceuticals Pfd. Conv. Ex 6% PFD CONV EX 23254L207 193 20,979 SH   SOLE   20,979 0 0
Derma Sciences COM 249827502 27,687 2,558,857 SH   SOLE   2,558,857 0 0
Discovery Laboratories Inc. COM 254668403 8,367 3,718,617 SH   SOLE   3,718,617 0 0
Dyax Corp. COM 26746E103 15,270 2,026,537 SH   SOLE   2,026,537 0 0
Enanta Pharmaceuticals COM 29251M106 2,976 109,097 SH   SOLE   109,097 0 0
Epizyme Inc. COM 29428V104 4,576 220,000 SH   SOLE   220,000 0 0
Five Prime Therapeutics Inc. COM 33830X104 333 19,823 SH   SOLE   19,823 0 0
Foundation Medicine Inc. COM 350465100 476 20,000 SH   SOLE   20,000 0 0
Galectin Therapeutics Inc. COM 363225202 813 100,600 SH   SOLE   100,600 0 0
Genomic Health Inc. COM 37244C101 399,560 13,650,835 SH   SOLE   13,650,835 0 0
Geron Corp. COM 374163103 1,908 402,629 SH   SOLE   402,629 0 0
Gilead Sciences Inc. COM 375558103 41,764 556,108 SH   SOLE   556,108 0 0
GW Pharmaceuticals PLC ADS 36197T103 3,912 94,172 SH   SOLE   94,172 0 0
Halozyme Therapeutics Inc. COM 40637H109 94,392 6,297,026 SH   SOLE   6,297,026 0 0
Idera Pharmaceuticals Inc. COM 45168K306 14,685 3,171,765 SH   SOLE   3,171,765 0 0
Incyte Corp. COM 45337C102 749,859 14,810,559 SH   SOLE   14,810,559 0 0
Infinity Pharmaceuticals Inc. COM 45665303 8,883 643,256 SH   SOLE   643,256 0 0
Insmed Inc. COM 457669307 13,538 796,378 SH   SOLE   796,378 0 0
Intercept Pharmaceuticals, Inc. COM 45845P108 24,775 362,847 SH   SOLE   362,847 0 0
Intermune Inc. COM 45884X103 2,210 150,000 SH   SOLE   150,000 0 0
Ironwood Pharmaceuticals COM 46333X108 6,341 546,160 SH   SOLE   546,160 0 0
Isis Pharmaceuticals COM 464330109 9,842 247,036 SH   SOLE   247,036 0 0
Karyopharm Therapeutics COM 48576U106 1,406 61,330 SH   SOLE   61,330 0 0
Kythera Biopharmaceuticals COM 501570105 11,698 313,191 SH   SOLE   313,191 0 0
Ligand Pharmaceuticals Inc. CLASS B 53220K207 3,861 73,400 SH   SOLE   73,400 0 0
Macrogenics COM 556099109 2,743 100,000 SH   SOLE   100,000 0 0
Medivation Inc. COM 58501N101 25,421 398,331 SH   SOLE   398,331 0 0
Mirati Therapeutics Inc. COM 60468T105 39,581 2,380,074 SH   SOLE   2,380,074 0 0
Novavax COM 670002104 6,589 1,286,913 SH   SOLE   1,286,913 0 0
Omeros Corp COM 682143102 6,869 608,404 SH   SOLE   608,404 0 0
Ophthotech Corp. COM 683745103 3,333 103,040 SH   SOLE   103,040 0 0
Orasure Technologies Inc. COM 68554V108 1,531 243,467 SH   SOLE   243,467 0 0
Osiris Therapeutics Inc. COM 68827R108 6,035 375,282 SH   SOLE   375,282 0 0
Pharmacyclics Inc. COM 716933106 922,319 8,719,218 SH   SOLE   8,719,218 0 0
Portola Pharmaceuticals, Inc. COM 737010108 5,779 224,434 SH   SOLE   224,434 0 0
Progenics Pharmaceuticals, Inc. COM 743187106 22,386 4,200,000 SH   SOLE   4,200,000 0 0
Prothena Corp. PLC SHS G72800108 8,935 336,918 SH   SOLE   336,918 0 0
Puma Biotechnology COM 74587V107 2,588 25,000 SH   SOLE   25,000 0 0
QLT, Inc. COM 746927102 8,555 1,535,863 SH   SOLE   1,535,863 0 0
Questcor Pharmaceuticals, Inc. COM 74835Y101 42,246 775,864 SH   SOLE   775,864 0 0
Receptos Inc. COM 756207106 2,899 100,000 SH   SOLE   100,000 0 0
Repros Therapeutics COM 76028H209 50,849 2,778,654 SH   SOLE   2,778,654 0 0
Rigel Pharmaceuticals COM 766559603 1,425 500,000 SH   SOLE   500,000 0 0
Salix Pharmaceuticals, Inc. COM 795435106 326 3,621 SH   SOLE   3,621 0 0
Sangamo COM 800677106 5,894 424,308 SH   SOLE   424,308 0 0
Seattle Genetics Inc. COM 812578102 827,156 20,735,926 SH   SOLE   20,735,926 0 0
Stemline Therapeutics Inc. COM 85858C107 13,231 675,042 SH   SOLE   675,042 0 0
Synageva Biopharma Corp. COM 87159A103 664,880 10,273,182 SH   SOLE   10,273,182 0 0
Synergy Pharmaceuticals COM 871639308 14,685 2,608,271 SH   SOLE   2,608,271 0 0
Synta Pharmaceuticals COM 87162T206 2,620 500,000 SH   SOLE   500,000 0 0
Tekmire Pharmaceuticals Corp. COM 87911B209 3,985 500,000 SH   SOLE   500,000 0 0
Tesaro Inc. COM 881569107 882 31,218 SH   SOLE   31,218 0 0
TG Therapeutics COM 88322Q108 8,579 2,199,656 SH   SOLE   2,199,656 0 0
Threshold Pharma COM 885807206 8,651 1,852,399 SH   SOLE   1,852,399 0 0
United Therapeutics Corp. COM 91307C102 2,262 20,000 SH   SOLE   20,000 0 0
Vanda Pharmaceuticals, Inc. COM 921659108 59,459 4,791,179 SH   SOLE   4,791,179 0 0
Ventrus Biosciences, Inc. COM 922822101 4,645 1,215,840 SH   SOLE   1,215,840 0 0
Xencor COM 98401F105 5,027 550,000 SH   SOLE   550,000 0 0
Xenoport COM 98411C100 5,946 1,034,112 SH   SOLE   1,034,112 0 0
Xoma Corp. COM 98419J107 155,008 23,032,372 SH   SOLE   23,032,372 0 0
Ziopharm Oncology Inc. COM 98973P101 1,103 254,199 SH   SOLE   254,199 0 0
Zogenix, Inc. COM 98978L105 9,463 2,751,000 SH   SOLE   2,751,000 0 0
Auxilium 1.5% 7/15/2018 CONV BONDS 05334DAA5 96,343 87,090,000 PRN   SOLE   87,090,000 0 0
Biomarin Pharmaceuticals Notes 1.875% 4/23/2017 CONV BONDS 09061GAD3 79,367 22,898,000 PRN   SOLE   22,898,000 0 0
Biomarin Pharmaceuticals Notes 0.75% 10/15/2018 CONV BONDS 09061GAE1 13,262 12,500,000 PRN   SOLE   12,500,000 0 0
Gilead 1.625% 5/1/16 CONV BONDS 375558AP8 70,910 21,500,000 PRN   SOLE   21,500,000 0 0
Incyte Genomics Notes 4.75% 10/1/2015 144A CONV BONDS 45337CAH5 233,032 40,446,000 PRN   SOLE   40,446,000 0 0
Incyte Genomics Notes 0.375% 11/15/2018 144A CONV BONDS 45337CAK8 310,045 259,000,000 PRN   SOLE   259,000,000 0 0
Incyte Genomics Notes 1.25% 11/15/2020 144A CONV BONDS 45337CAL6 333,004 274,500,000 PRN   SOLE   274,500,000 0 0
Intermune Inc Notes 5% 3/1/15 CONV BONDS 45884XAD5 19,526 16,860,000 PRN   SOLE   16,860,000 0 0
Intermune Inc Notes 2.5% 12/15/17 CONV BONDS 45884XAF0 56,157 41,000,000 PRN   SOLE   41,000,000 0 0
Medivation 2.625% 4/1/17 CONV BONDS 58501NAA9 57,806 39,500,000 PRN   SOLE   39,500,000 0 0
Salix 2.75% 5/15/15 CONV BONDS 795435AC0 431,748 219,440,000 PRN   SOLE   219,440,000 0 0
Salix 1.5% 3/15/19 CONV BONDS 795435AE6 22,369 15,000,000 PRN   SOLE   15,000,000 0 0