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 548,167 19,955,126 SH   SOLE   19,955,126 0 0
Achillion COM 00448Q201 1,374 455,000 SH   SOLE   455,000 0 0
Aegerion Pharmaceuticals COM 00767E102 70,339 820,275 SH   SOLE   820,275 0 0
Agios Pharmaceuticals COM 00847X104 5,592 200,000 SH   SOLE   200,000 0 0
Ambit Biosciences Corp. COM 02318X100 11,593 747,962 SH   SOLE   747,962 0 0
Amicus Therapeutics COM 03152W109 1,195 515,072 SH   SOLE   515,072 0 0
Anacor Pharmaceuticals COM 32420101 9,308 876,463 SH   SOLE   876,463 0 0
Ariad Pharmaceuticals Inc. COM 04033A100 24,540 1,333,703 SH   SOLE   1,333,703 0 0
Array Biopharma Inc. COM 04269X105 9,330 1,500,000 SH   SOLE   1,500,000 0 0
Arrowhead Research Corp. COM 042797209 17,867 3,140,000 SH   SOLE   3,140,000 0 0
Avanir Pharmaceuticals COM 05348P401 18,733 4,428,591 SH   SOLE   4,428,591 0 0
Biocryst Pharmaceuticals Inc. COM 09058V103 48,776 6,699,979 SH   SOLE   6,699,979 0 0
BioDelivery Sciences Intl. Inc. COM 09060J106 4,594 846,005 SH   SOLE   846,005 0 0
Biomarin Pharmaceuticals COM 09061G101 56,532 783,311 SH   SOLE   783,311 0 0
Bluebird Bio Inc. COM 09609G100 3,007 111,521 SH   SOLE   111,521 0 0
Cerus COM 157085101 56,820 8,455,306 SH   SOLE   8,455,306 0 0
Chelsea Therapeutics COM 163428105 17,326 5,794,753 SH   SOLE   5,794,753 0 0
Chemocentryx Inc. COM 16383L106 1,112 200,000 SH   SOLE   200,000 0 0
Clovis Oncology COM 189464100 18,346 301,744 SH   SOLE   301,744 0 0
Cyclacel Pharmaceuticals Pfd. Conv. Ex 6% PFD CONV EX 23254L207 177 20,979 SH   SOLE   20,979 0 0
Cubist Pharmaceuticals Inc. COM 229678107 318 5,000 SH   SOLE   5,000 0 0
Derma Sciences COM 249827502 31,679 2,558,857 SH   SOLE   2,558,857 0 0
Discovery Laboratories Inc. COM 254668403 2,976 1,518,617 SH   SOLE   1,518,617 0 0
Enanta Pharmaceuticals COM 29251M106 2,865 125,000 SH   SOLE   125,000 0 0
Epizyme Inc. COM 29428V104 800 20,000 SH   SOLE   20,000 0 0
Genomic Health Inc. COM 37244C101 417,442 13,650,835 SH   SOLE   13,650,835 0 0
Geron Corp. COM 374163103 3,350 1,000,000 SH   SOLE   1,000,000 0 0
Gilead Sciences Inc. COM 375558103 78,323 1,245,800 SH   SOLE   1,245,800 0 0
Halozyme Therapeutics Inc. COM 40637H109 77,474 7,017,608 SH   SOLE   7,017,608 0 0
Idera Pharmaceuticals Inc. COM 45168K306 10,205 5,865,000 SH   SOLE   5,865,000 0 0
Incyte Corp. COM 45337C102 565,023 14,810,559 SH   SOLE   14,810,559 0 0
Infinity Pharmaceuticals Inc. COM 45665G303 10,230 586,936 SH   SOLE   586,936 0 0
Insmed Inc. COM 457669307 14,764 945,803 SH   SOLE   945,803 0 0
Intercept Pharmaceuticals, Inc. COM 45845P108 25,047 362,847 SH   SOLE   362,847 0 0
Ironwood Pharmaceuticals COM 46333X108 5,460 461,160 SH   SOLE   461,160 0 0
Isis Pharmaceuticals COM 464330109 9,274 247,036 SH   SOLE   247,036 0 0
Kythera Biopharmaceuticals COM 501570105 12,081 265,000 SH   SOLE   265,000 0 0
Ligand Pharmaceuticals Inc. CLASS B 53220K207 3,177 73,400 SH   SOLE   73,400 0 0
Medivation Inc. COM 58501N101 23,876 398,331 SH   SOLE   398,331 0 0
MEI Pharma, Inc. COM 55279B103 3,885 345,317 SH   SOLE   345,317 0 0
Mirati Therapeutics Inc. COM 60468T105 29,998 1,980,074 SH   SOLE   1,980,074 0 0
Novavax COM 670002104 5,408 1,716,913 SH   SOLE   1,716,913 0 0
Omeros Corp COM 682143102 5,932 608,404 SH   SOLE   608,404 0 0
Orasure Technologies Inc. COM 68554V108 1,463 243,467 SH   SOLE   243,467 0 0
Osiris Therapeutics Inc. COM 68827R108 6,245 375,282 SH   SOLE   375,282 0 0
Pharmacyclics Inc. COM 716933106 1,245,752 9,010,211 SH   SOLE   9,010,211 0 0
Portola Pharmaceuticals, Inc. COM 737010108 8,023 299,911 SH   SOLE   299,911 0 0
Progenics Pharmaceuticals, Inc. COM 743187106 21,084 4,200,000 SH   SOLE   4,200,000 0 0
Prothena Corp. PLC COM G72800108 7,478 369,650 SH   SOLE   369,650 0 0
Puma Biotechnology COM 74587V107 5,366 100,000 SH   SOLE   100,000 0 0
QLT, Inc. COM 746927102 7,111 1,535,863 SH   SOLE   1,535,863 0 0
Questcor Pharmaceuticals, Inc. COM 74835Y101 31,659 545,846 SH   SOLE   545,846 0 0
Receptos Inc. COM 756207106 2,597 100,000 SH   SOLE   100,000 0 0
Repros Therapeutics COM 76028H209 74,468 2,778,654 SH   SOLE   2,778,654 0 0
Rigel Pharmaceuticals COM 766559603 1,790 500,000 SH   SOLE   500,000 0 0
Salix Pharmaceuticals, Inc. COM 795435106 242 3,621 SH   SOLE   3,621 0 0
Sangamo COM 800677106 1,854 176,707 SH   SOLE   176,707 0 0
Seattle Genetics Inc. COM 812578102 846,925 19,322,947 SH   SOLE   19,322,947 0 0
Stemline Therapeutics Inc. COM 85858C107 36,255 800,400 SH   SOLE   800,400 0 0
Synageva Biopharma Corp. COM 87159A103 651,238 10,273,182 SH   SOLE   10,273,182 0 0
Synergy Pharmaceuticals COM 871639308 11,920 2,608,271 SH   SOLE   2,608,271 0 0
Synta Pharmaceuticals COM 87162T206 3,155 500,000 SH   SOLE   500,000 0 0
Targacept COM 87611R306 10,984 2,068,186 SH   SOLE   2,068,186 0 0
Tesaro Inc. COM 881569107 1,209 31,218 SH   SOLE   31,218 0 0
TG Therapeutics COM 88322Q108 3,024 600,000 SH   SOLE   600,000 0 0
Threshold Pharma COM 885807206 8,614 1,852,399 SH   SOLE   1,852,399 0 0
United Therapeutics Corp. COM 91307C102 4,414 55,984 SH   SOLE   55,984 0 0
Vanda Pharmaceuticals, Inc. COM 921659108 52,463 4,791,179 SH   SOLE   4,791,179 0 0
Ventrus Biosciences, Inc. COM 922822101 3,514 1,215,840 SH   SOLE   1,215,840 0 0
Viropharma Inc. COM 928241108 219,551 5,592,239 SH   SOLE   5,592,239 0 0
Xenoport COM 98411C100 5,874 1,034,112 SH   SOLE   1,034,112 0 0
Xoma Corp. COM 98419J107 103,415 23,032,372 SH   SOLE   23,032,372 0 0
Ziopharm Oncology Inc. COM 98973P101 1,002 254,199 SH   SOLE   254,199 0 0
Zogenix, Inc. COM 98978L105 3,704 2,001,000 SH   SOLE   2,001,000 0 0
Auxilium 1.5% 7/15/2018 CONV BONDS 05334DAA5 90,247 87,090,000 PRN   SOLE   87,090,000 0 0
Biomarin Pharmaceuticals Notes 1.875% 4/23/2017 CONV BONDS 09061GAD3 82,032 22,898,000 PRN   SOLE   22,898,000 0 0
Gilead 1.625% 5/1/16 CONV BONDS 375558AP8 59,528 21,500,000 PRN   SOLE   21,500,000 0 0
Incyte Genomics Notes 4.75% 10/1/2015 CONV BONDS 45337CAH5 688,121 157,758,000 PRN   SOLE   157,758,000 0 0
Intermune Inc Notes 5% 3/1/15 CONV BONDS 45884XAD5 20,042 16,860,000 PRN   SOLE   16,860,000 0 0
Intermune Inc Notes 2.5% 12/15/17 CONV BONDS 45884XAF0 58,425 41,000,000 PRN   SOLE   41,000,000 0 0
Medivation 2.625% 4/1/17 CONV BONDS 58501NAA9 55,559 39,500,000 PRN   SOLE   39,500,000 0 0
Salix 2.75% 5/15/15 CONV BONDS 795435AC0 335,332 219,440,000 PRN   SOLE   219,440,000 0 0