N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-07381

T. Rowe Price Health Sciences Fund, Inc.

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

(Name and address of agent for service)

Registrant’s telephone number, including area code:  (410) 345-2000

Date of fiscal year end:  December 31

Date of reporting period:  June 30, 2023

Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1

Market

Commentary

Portfolio

Summary

Fund

Expense

Example

Financial

Highlights

Portfolio

of

Investments

Financial

Statements

and

Notes

Additional

Fund

Information

June

30,

2023

Semiannual

Report

For

more

insights

from

T.

Rowe

Price

investment

professionals,

go

to

troweprice.com

.

T.

ROWE

PRICE

PRHSX

Health

Sciences

Fund

–

.

THISX

Health

Sciences

Fund–

.

I Class

T.

ROWE

PRICE

Health

Sciences

Fund

Log

in

to

your

account

at

troweprice.com

for

more

information.

*

Certain

mutual

fund

accounts

that

are

assessed

an

annual

account

service

fee

can

also

save

money

by

switching

to

e-delivery.

T.

ROWE

PRICE

Health

Sciences

Fund

Market

Commentary

1

Dear

Shareholder

Most

major

global

stock

and

bond

indexes

produced

positive

returns

during

the

first

half

of

your

fund’s

fiscal

year,

the

six-month

period

ended

June

30,

2023.

Despite

turmoil

in

the

banking

sector

and

a

protracted

debt

ceiling

standoff,

markets

were

resilient

as

growth

remained

positive

in

the

major

economies

and

corporate

earnings

results

came

in

stronger

than

expected.

For

the

six-month

period,

the

technology-oriented

Nasdaq

Composite

Index

gained

more

than

30%,

the

strongest

result

of

the

major

benchmarks,

as

tech

companies

benefited

from

investor

enthusiasm

for

artificial

intelligence

applications.

Growth

stocks

outperformed

value

shares,

and

developed

market

stocks

generally

outpaced

their

emerging

market

counterparts.

Currency

movements

were

mixed

over

the

period,

although

a

weaker

dollar

versus

major

European

currencies

was

beneficial

for

U.S.

investors

in

European

securities.

Within

the

S&P

500

Index,

the

information

technology,

communication

services,

and

consumer

discretionary

sectors

were

all

lifted

by

the

tech

rally

and

recorded

significant

gains.

Conversely,

the

defensive

utilities

sector

had

the

weakest

returns

in

the

growth-focused

environment,

and

the

energy

sector

also

lost

ground

amid

declining

oil

prices.

The

financials

sector

partly

recovered

from

the

failure

of

three

large

regional

banks

during

the

period

but

still

finished

with

modest

losses.

Cheaper

oil

contributed

to

slowing

inflation,

although

core

inflation

readings—

which

exclude

volatile

food

and

energy

prices—remained

stubbornly

high.

In

response,

the

Federal

Reserve

raised

its

short-term

lending

benchmark

rate

to

a

target

range

of

5.00%

to

5.25%

by

early

May,

the

highest

level

since

2007.

The

Fed

held

rates

steady

at

its

June

meeting,

but

policymakers

indicated

that

two

more

rate

hikes

could

come

by

the

end

of

the

year.

In

the

fixed

income

market,

returns

were

generally

positive

across

most

sectors

as

investors

benefited

from

the

higher

interest

rates

that

have

become

available

over

the

past

year.

Investment-grade

corporate

bonds

were

supported

by

generally

solid

balance

sheets

and

were

among

the

strongest

performers.

Global

economies

and

markets

showed

surprising

resilience

in

recent

months,

but,

moving

into

the

second

half

of

2023,

we

believe

investors

could

face

potential

challenges.

The

impact

of

the

Fed’s

rate

hikes

has

yet

to

be

fully

felt

in

the

economy,

and

while

the

regional

banking

turmoil

appears

to

have

been

contained

by

the

swift

actions

of

regulators,

it

could

weigh

on

credit

conditions.

Moreover,

market

consensus

still

seems

to

point

to

a

coming

recession,

although

hopes

have

emerged

that

such

a

downturn

could

be

more

modest.

T.

ROWE

PRICE

Health

Sciences

Fund

2

We

believe

this

environment

makes

skilled

active

management

a

critical

tool

for

identifying

risks

and

opportunities,

and

our

investment

teams

will

continue

to

use

fundamental

research

to

identify

securities

that

can

add

value

to

your

portfolio

over

the

long

term.

You

may

notice

that

this

report

no

longer

contains

the

commentary

on

your

fund’s

performance

and

positioning

that

we

previously

included

in

the

semiannual

shareholder

letters.

The

Securities

and

Exchange

Commission

(SEC)

adopted

new

rules

in

January

that

will

require

fund

reports

to

transition

to

a

new

format

known

as

a

Tailored

Shareholder

Report.

This

change

will

require

a

much

more

concise

summary

of

performance

rather

than

the

level

of

detail

we

have

provided

historically

while

also

aiming

to

be

more

visually

engaging.

As

we

prepare

to

make

changes

to

the

annual

reports

to

meet

the

new

report

regulatory

requirements

by

mid-2024,

we

felt

the

time

was

right

to

discontinue

the

optional

six-month

semiannual

fund

letter

to

focus

on

the

changes

to

come.

While

semiannual

fund

letters

will

no

longer

be

produced,

you

may

continue

to

access

current

fund

information

as

well

as

insights

and

perspectives

from

our

investment

team

on

our

personal

investing

website.

Thank

you

for

your

continued

confidence

in

T.

Rowe

Price.

Sincerely, 

Robert

Sharps

CEO

and

President

T.

ROWE

PRICE

Health

Sciences

Fund

Portfolio

Summary

3

INDUSTRY

DIVERSIFICATION

Percent

of

Net

Assets

12/31/22

6/30/23

Biotechnology

26.8‌%

30.5‌%

Services

23.6‌

21.4‌

Products

and

Devices

14.7‌

18.0‌

Pharmaceuticals

18.0‌

17.1‌

Life

Sciences

15.9‌

12.1‌

Consumer

Nondurables

0.2‌

0.4‌

Other

and

Reserves

0.8‌

0.5‌

Total

100.0‌%

100.0‌%

Historical

weightings

reflect

current

industry/sector

classifications.

T.

ROWE

PRICE

Health

Sciences

Fund

4

PORTFOLIO

HIGHLIGHTS

TWENTY-FIVE

LARGEST

HOLDINGS

Percent

of

Net

Assets

6/30/23

UnitedHealth

Group

7.1‌%

Eli

Lilly

6.1‌ 

Thermo

Fisher

Scientific

4.5‌ 

Merck

4.0‌ 

Intuitive

Surgical

3.9‌ 

Regeneron

Pharmaceuticals

3.4‌ 

AstraZeneca

3.2‌ 

Elevance

Health

2.9‌ 

Vertex

Pharmaceuticals

2.9‌ 

Stryker

2.8‌ 

Danaher

1.9‌ 

Argenx

1.8‌ 

Penumbra

1.8‌ 

Humana

1.7‌ 

Apellis

Pharmaceuticals

1.7‌ 

Alnylam

Pharmaceuticals

1.6‌ 

Becton

Dickinson

&

Company

1.5‌ 

Molina

Healthcare

1.4‌ 

Agilent

Technologies

1.4‌ 

Cigna

Group

1.2‌ 

HCA

Healthcare

1.1‌ 

Karuna

Therapeutics

1.0‌ 

Shockwave

Medical

0.9‌ 

West

Pharmaceutical

Services

0.9‌ 

Exact

Sciences

0.9‌ 

Total

61.6‌%

Note:

The

information

shown

does

not

reflect

any

exchange-traded

funds

(ETFs),

cash

reserves,

or

collateral

for

securities

lending

that

may

be

held

in

the

portfolio.

T.

ROWE

PRICE

Health

Sciences

Fund

5

FUND

EXPENSE

EXAMPLE

As

a

mutual

fund

shareholder,

you

may

incur

two

types

of

costs:

(1)

transaction

costs,

such

as

redemption

fees

or

sales

loads,

and

(2)

ongoing

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

fund

expenses.

The

following

example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

the

fund

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

The

example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

most

recent

six-month

period

and

held

for

the

entire

period.

Please

note

that

the

fund

has

two

share

classes:

The

original

share

class

(Investor

Class)

charges

no

distribution

and

service

(12b-1)

fee,

and

the

I

Class

shares

are

also

available

to

institutionally

oriented

clients

and

impose

no

12b-1

or

administrative

fee

payment.

Each

share

class

is

presented

separately

in

the

table.

Actual

Expenses

The

first

line

of

the

following

table

(Actual)

provides

information

about

actual

account

values

and

expenses

based

on

the

fund’s

actual

returns.

You

may

use

the

information

on

this

line,

together

with

your

account

balance,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

on

the

first

line

under

the

heading

“Expenses

Paid

During

Period”

to

estimate

the

expenses

you

paid

on

your

account

during

this

period.

Hypothetical

Example

for

Comparison

Purposes

The

information

on

the

second

line

of

the

table

(Hypothetical)

is

based

on

hypothetical

account

values

and

expenses

derived

from

the

fund’s

actual

expense

ratio

and

an

assumed

5%

per

year

rate

of

return

before

expenses

(not

the

fund’s

actual

return).

You

may

compare

the

ongoing

costs

of

investing

in

the

fund

with

other

funds

by

contrasting

this

5%

hypothetical

example

and

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

the

other

funds.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

Note:

T.

Rowe

Price

charges

an

annual

account

service

fee

of

$20,

generally

for

accounts

with

less

than

$10,000.

The

fee

is

waived

for

any

investor

whose

T.

Rowe

Price

mutual

fund

accounts

total

$50,000

or

more;

accounts

electing

to

receive

electronic

delivery

of

account

statements,

transaction

confirmations,

prospectuses,

and

shareholder

reports;

or

accounts

of

an

investor

who

is

a

T.

Rowe

Price

Personal

Services

or

Enhanced

Personal

Services

client

(enrollment

in

these

programs

generally

requires

T.

Rowe

Price

assets

of

at

least

$250,000).

This

fee

is

not

included

in

the

accompanying

table.

If

you

are

subject

to

the

fee,

keep

it

in

mind

when

you

are

estimating

the

ongoing

expenses

of

investing

in

the

fund

and

when

comparing

the

expenses

of

this

fund

with

other

funds.

You

should

also

be

aware

that

the

expenses

shown

in

the

table

highlight

only

your

ongoing

costs

and

do

not

reflect

any

transaction

costs,

such

as

redemption

fees

or

sales

loads.

Therefore,

the

second

line

of

the

table

is

useful

in

comparing

ongoing

costs

only

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

To

the

extent

a

fund

charges

transaction

costs,

however,

the

total

cost

of

owning

that

fund

is

higher.

T.

ROWE

PRICE

Health

Sciences

Fund

6

HEALTH

SCIENCES

FUND

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period*

1/1/23

to

6/30/23

Investor

Class

Actual

$1,000.00

$1,010.60

$3.99

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,020.83

  4.01

I

Class

Actual

  1,000.00

  1,011.20

  3.34

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,021.47

  3.36

*

Expenses

are

equal

to

the

fund’s

annualized

expense

ratio

for

the

6-month

period,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

the

number

of

days

in

the

most

recent

fiscal

half

year

(181),

and

divided

by

the

days

in

the

year

(365)

to

reflect

the

half-year

period.

The

annualized

expense

ratio

of

the

1

Investor

Class

was

0.80%,

and

the

2

I Class

was

0.67%.

FUND

EXPENSE

EXAMPLE

(CONTINUED)

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Financial

Highlights

7

For

a

share

outstanding

throughout

each

period

Investor

Class

6

Months

.

Ended

6/30/23

..

Year

..

..

Ended

.

12/31/22

12/31/21

12/31/20

12/31/19

12/31/18

NET

ASSET

VALUE

Beginning

of

period

$

89.82‌

$

104.08‌

$

98.85‌

$

81.43‌

$

67.01‌

$

70.35‌

Investment

activities

Net

investment

income

(loss)

(1)(2)

(0.02‌)

(0.09‌)

(0.22‌)

(0.04‌)

—‌

(3)

0.04‌

Net

realized

and

unrealized

gain/loss

0.97‌

(12.58‌)

13.21‌

24.54‌

19.45‌

1.02‌

Total

from

investment

activities

0.95‌

(12.67‌)

12.99‌

24.50‌

19.45‌

1.06‌

Distributions

Net

investment

income

—‌

—‌

—‌

—‌

(0.05‌)

—‌

Net

realized

gain

—‌

(1.59‌)

(7.76‌)

(7.08‌)

(4.98‌)

(4.40‌)

Total

distributions

—‌

(1.59‌)

(7.76‌)

(7.08‌)

(5.03‌)

(4.40‌)

NET

ASSET

VALUE

End

of

period

$

90.77‌

$

89.82‌

$

104.08‌

$

98.85‌

$

81.43‌

$

67.01‌

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Financial

Highlights

8

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Investor

Class

6

Months

.

Ended

6/30/23

..

Year

..

..

Ended

.

12/31/22

12/31/21

12/31/20

12/31/19

12/31/18

Ratios/Supplemental

Data

Total

return

(2)(4)

1.06‌%

(12.19‌)%

13.27‌%

30.12‌%

29.11‌%

1.23‌%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

0.80‌%

(5)

0.80‌%

0.75‌%

0.76‌%

0.76‌%

0.77‌%

Net

expenses

after

waivers/payments

by

Price

Associates

0.80‌%

(5)

0.80‌%

0.75‌%

0.76‌%

0.76‌%

0.77‌%

Net

investment

income

(loss)

(0.05‌)%

(5)

(0.10‌)%

(0.21‌)%

(0.05‌)%

0.00‌%

0.05‌%

Portfolio

turnover

rate

26.0‌%

28.8‌%

33.8‌%

41.7‌%

38.8‌%

43.0‌%

Net

assets,

end

of

period

(in

millions)

$9,808

$10,235

$17,213

$15,753

$12,649

$10,666

0‌%

0‌%

0‌%

0‌%

0‌%

0‌%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

6

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

Amounts

round

to

less

than

$0.01

per

share.

(4)

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,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(5)

Annualized

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Financial

Highlights

9

For

a

share

outstanding

throughout

each

period

I

Class

6

Months

.

Ended

6/30/23

..

Year

..

..

Ended

.

12/31/22

12/31/21

12/31/20

12/31/19

12/31/18

NET

ASSET

VALUE

Beginning

of

period

$

89.91‌

$

104.05‌

$

98.87‌

$

81.42‌

$

67.00‌

$

70.34‌

Investment

activities

Net

investment

income

(loss)

(1)(2)

0.03‌

0.05‌

(0.11‌)

0.05‌

0.08‌

0.14‌

Net

realized

and

unrealized

gain/loss

0.98‌

(12.60‌)

13.22‌

24.57‌

19.46‌

1.01‌

Total

from

investment

activities

1.01‌

(12.55‌)

13.11‌

24.62‌

19.54‌

1.15‌

Distributions

Net

investment

income

—‌

—‌

—‌

—‌

(0.14‌)

—‌

Net

realized

gain

—‌

(1.59‌)

(7.93‌)

(7.17‌)

(4.98‌)

(4.49‌)

Total

distributions

—‌

(1.59‌)

(7.93‌)

(7.17‌)

(5.12‌)

(4.49‌)

NET

ASSET

VALUE

End

of

period

$

90.92‌

$

89.91‌

$

104.05‌

$

98.87‌

$

81.42‌

$

67.00‌

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Financial

Highlights

10

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

I

Class

6

Months

.

Ended

6/30/23

..

Year

..

..

Ended

.

12/31/22

12/31/21

12/31/20

12/31/19

12/31/18

Ratios/Supplemental

Data

Total

return

(2)(3)

1.12‌%

(12.08‌)%

13.40‌%

30.27‌%

29.25‌%

1.35‌%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

0.67‌%

(4)

0.67‌%

0.65‌%

0.65‌%

0.65‌%

0.66‌%

Net

expenses

after

waivers/payments

by

Price

Associates

0.67‌%

(4)

0.67‌%

0.65‌%

0.65‌%

0.65‌%

0.66‌%

Net

investment

income

(loss)

0.08‌%

(4)

0.05‌%

(0.10‌)%

0.06‌%

0.11‌%

0.18‌%

Portfolio

turnover

rate

26.0‌%

28.8‌%

33.8‌%

41.7‌%

38.8‌%

43.0‌%

Net

assets,

end

of

period

(in

thousands)

$5,863,139

$5,937,842

$2,295,409

$1,679,405

$1,154,768

$835,422

0‌%

0‌%

0‌%

0‌%

0‌%

0‌%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

6

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

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,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(4)

Annualized

T.

ROWE

PRICE

Health

Sciences

Fund

June

30,

2023

(Unaudited)

11

Portfolio

of

Investments

‡

Shares

$

Value

(Cost

and

value

in

$000s)

‡

COMMON

STOCKS

94.8%

BIOTECHNOLOGY

25.0%

Major

Biotechnology

4.8%

Biogen (1)

223,253‌

63,594‌

Celldex

Therapeutics  (1)

343,157‌

11,643‌

Exact

Sciences  (1)

1,524,943‌

143,192‌

Exact

Sciences

CMO

Milestone,

Acquisition

Date:

1/6/21,

Cost $—  (1)(2)(3)

3,726,272‌

1,975‌

Exact

Sciences

FDA

Milestone,

Acquisition

Date:

1/6/21,

Cost $—  (1)(2)(3)

1,863,136‌

987‌

Neurocrine

Biosciences  (1)

318,106‌

29,997‌

Royalty

Pharma,

Class

A 

1,486,584‌

45,698‌

Vertex

Pharmaceuticals  (1)

1,286,667‌

452,791‌

749,877‌

Other

Biotechnology

20.2%

Aadi

Bioscience  (1)

135,636‌

928‌

ACADIA

Pharmaceuticals  (1)

2,007,995‌

48,091‌

Acerta

Future

Payments,

EC,

Acquisition

Date:

6/30/21,

Cost $8,068  (1)(2)(3)

8,067,982‌

7,665‌

Adaptive

Biotechnologies  (1)

363,947‌

2,442‌

ADC

Therapeutics  (1)

861,026‌

1,851‌

Affinivax

Expense

Fund,

Acquisition

Date:

9/12/22,

Cost $12  (1)

(2)(3)

12,445‌

12‌

Affinivax

Milestone

Event,

Acquisition

Date:

9/12/22,

Cost $3,454  (1)(2)(3)

7,349,672‌

4,410‌

Affinivax

Next

Gen.

Prod

Milestone

Event,

Acquisition

Date:

9/12/22,

Cost $3,454  (1)(2)(3)

7,349,672‌

1,617‌

Agios

Pharmaceuticals  (1)

256,224‌

7,256‌

Alector  (1)

112,091‌

674‌

Allakos  (1)

817,787‌

3,566‌

Allogene

Therapeutics  (1)

1,959,954‌

9,741‌

Alnylam

Pharmaceuticals  (1)

1,358,613‌

258,055‌

Apellis

Pharmaceuticals  (1)

2,872,417‌

261,677‌

Arvinas  (1)

497,740‌

12,354‌

Ascendis

Pharma,

ADR  (1)

734,613‌

65,564‌

Avidity

Biosciences  (1)

1,495,805‌

16,588‌

BeiGene,

ADR  (1)

582,179‌

103,802‌

Bicycle

Therapeutics,

ADR  (1)

218,728‌

5,582‌

BioMarin

Pharmaceutical  (1)

873,671‌

75,730‌

Blueprint

Medicines  (1)

1,718,087‌

108,583‌

C4

Therapeutics  (1)

381,492‌

1,049‌

Centessa

Pharmaceuticals,

ADR  (1)

883,806‌

5,471‌

Cerevel

Therapeutics

Holdings  (1)

1,929,050‌

61,324‌

CRISPR

Therapeutics  (1)

307,776‌

17,278‌

T.

ROWE

PRICE

Health

Sciences

Fund

12

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Cytokinetics  (1)

393,508‌

12,836‌

Day

One

Biopharmaceuticals  (1)

289,620‌

3,458‌

Denali

Therapeutics  (1)

976,379‌

28,813‌

Entrada

Therapeutics  (1)

576,400‌

8,727‌

EQRx,

Warrants,

12/20/26  (1)

202,056‌

32‌

Evotec

(EUR)  (1)

334,781‌

7,541‌

Exelixis  (1)

2,059,721‌

39,361‌

Fate

Therapeutics  (1)

654,023‌

3,113‌

Generation

Bio  (1)

1,388,831‌

7,639‌

Genmab

(DKK)  (1)

205,729‌

77,963‌

Ginkgo

Bioworks,

Earn

Out

Shares

$15.00,

Acquisition

Date:

9/17/21,

Cost $—  (1)(3)

212,706‌

103‌

Ginkgo

Bioworks,

Earn

Out

Shares

$17.50,

Acquisition

Date:

9/17/21,

Cost $—  (1)(3)

212,706‌

91‌

Ginkgo

Bioworks,

Earn

Out

Shares

$20.00,

Acquisition

Date:

9/17/21,

Cost $—  (1)(3)

212,706‌

81‌

Gossamer

Bio  (1)

1,039,680‌

1,248‌

Gyroscope

Therapeutics,

Milestone

Payment

1,

Acquisition

Date:

2/18/22,

Cost $5,684  (1)(2)(3)

5,683,928‌

2,785‌

Gyroscope

Therapeutics,

Milestone

Payment

2,

Acquisition

Date:

2/18/22,

Cost $3,788  (1)(2)(3)

3,788,007‌

1,023‌

Gyroscope

Therapeutics,

Milestone

Payment

3,

Acquisition

Date:

2/18/22,

Cost $3,788  (1)(2)(3)

3,788,007‌

985‌

IGM

Biosciences  (1)

460,817‌

4,253‌

Immuneering,

Class

A  (1)

1,279,828‌

12,977‌

Immunocore

Holdings,

ADR  (1)

1,659,406‌

99,498‌

Immunome

PIPE,

Acquisition

Date:

6/29/23,

Cost $4,781  (1)(3)(4)

831,551‌

5,920‌

Incyte  (1)

648,387‌

40,362‌

Insmed  (1)

2,290,058‌

48,320‌

Intellia

Therapeutics  (1)

293,422‌

11,966‌

Ionis

Pharmaceuticals  (1)

1,068,458‌

43,839‌

Iovance

Biotherapeutics  (1)

1,840,960‌

12,960‌

Karuna

Therapeutics  (1)

740,404‌

160,557‌

Kymera

Therapeutics  (1)

937,491‌

21,553‌

Leap

Therapeutics  (1)

336,997‌

1,055‌

Leap

Therapeutics,

Acquisition

Date:

9/28/20,

Cost $551  (1)(3)

43,400‌

122‌

Legend

Biotech,

ADR  (1)

1,546,863‌

106,780‌

LianBio,

ADR  (1)

2,145,402‌

4,891‌

Longboard

Pharmaceuticals  (1)

629,404‌

4,620‌

Lyell

Immunopharma  (1)

4,958,366‌

15,768‌

Mirati

Therapeutics  (1)

806,085‌

29,124‌

Moderna  (1)

375,990‌

45,683‌

Monte

Rosa

Therapeutics  (1)

990,605‌

6,786‌

MoonLake

Immunotherapeutics  (1)

864,623‌

44,096‌

Morphic

Holding  (1)

607,845‌

34,848‌

Novocure  (1)

1,359,137‌

56,404‌

T.

ROWE

PRICE

Health

Sciences

Fund

13

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Prelude

Therapeutics  (1)

811,342‌

3,651‌

Prothena  (1)

808,696‌

55,218‌

PTC

Therapeutics  (1)

733,637‌

29,837‌

RAPT

Therapeutics  (1)

629,454‌

11,771‌

Reata

Pharmaceuticals,

Class

A  (1)

72,200‌

7,361‌

Regeneron

Pharmaceuticals  (1)

740,147‌

531,825‌

Relay

Therapeutics  (1)

2,661,402‌

33,427‌

Relmada

Therapeutics  (1)

113,815‌

280‌

Repligen  (1)

275,317‌

38,946‌

Replimune

Group  (1)

1,540,691‌

35,775‌

REVOLUTION

Medicines  (1)

1,508,354‌

40,348‌

Rocket

Pharmaceuticals  (1)

639,502‌

12,707‌

Sage

Therapeutics  (1)

68,716‌

3,231‌

Sana

Biotechnology  (1)

1,947,425‌

11,607‌

Sarepta

Therapeutics  (1)

495,762‌

56,775‌

Scholar

Rock,

Warrants,

12/31/25,

Acquisition

Date:

6/17/22,

Cost $—  (1)(3)

151,540‌

590‌

Scholar

Rock

Holding  (1)

1,794,809‌

13,533‌

SpringWorks

Therapeutics  (1)

720,185‌

18,883‌

Stoke

Therapeutics  (1)

219,699‌

2,335‌

Tenaya

Therapeutics  (1)

1,122,354‌

6,588‌

Theseus

Pharmaceuticals  (1)

938,442‌

8,756‌

Ultragenyx

Pharmaceutical  (1)

1,324,725‌

61,110‌

Vividion

Therapeutics,

Milestone

Payment

3,

Acquisition

Date:

8/25/21,

Cost $—  (1)(2)(3)

1,746,361‌

1,360‌

Voyager

Therapeutics  (1)

721,235‌

8,258‌

Xencor  (1)

760,971‌

19,001‌

Zai

Lab,

ADR  (1)

1,170,345‌

32,454‌

Zentalis

Pharmaceuticals  (1)

852,591‌

24,052‌

3,159,170‌

Total

Biotechnology

3,909,047‌

LIFE

SCIENCES

10.3%

Life

Sciences

10.3%

Agilent

Technologies 

1,822,832‌

219,196‌

Bio-Techne 

600,706‌

49,036‌

Bruker 

1,187,890‌

87,809‌

Charles

River

Laboratories

International  (1)

312,630‌

65,730‌

Danaher 

1,244,231‌

298,615‌

Ginkgo

Bioworks

Holdings,

Class

A  (1)

2,000,505‌

3,721‌

Illumina  (1)

160,589‌

30,109‌

Mettler-Toledo

International  (1)

38,224‌

50,136‌

Olink

Holding,

ADR  (1)

1,981,171‌

37,147‌

Pacific

Biosciences

of

California  (1)

2,991,252‌

39,784‌

QuidelOrtho  (1)

189,851‌

15,731‌

Seer  (1)

816,372‌

3,486‌

T.

ROWE

PRICE

Health

Sciences

Fund

14

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Senti

Biosciences  (1)

1,240,030‌

773‌

SomaLogic,

Warrants,

8/31/26  (1)

91,532‌

23‌

SomaLogic,

Earn

Out

Shares

$20,

Acquisition

Date:

9/2/21,

Cost $—  (1)(2)(3)

3,873,442‌

—‌

Thermo

Fisher

Scientific 

1,361,622‌

710,426‌

Twist

Bioscience  (1)

431,965‌

8,838‌

Total

Life

Sciences

1,620,560‌

MISCELLANEOUS

0.0%

Miscellaneous

0.0%

Orchestra

BioMed

Holdings  (1)

494,726‌

3,463‌

Total

Miscellaneous

3,463‌

PHARMACEUTICALS

16.0%

Major

Pharmaceuticals

16.0%

AbbVie 

710,795‌

95,766‌

AstraZeneca,

ADR 

7,017,118‌

502,215‌

Daiichi

Sankyo

(JPY) 

2,425,700‌

77,075‌

Eli

Lilly 

2,045,251‌

959,182‌

Merck 

5,474,048‌

631,650‌

Pfizer 

3,698,907‌

135,676‌

Roche

Holding

(CHF) 

354,778‌

108,374‌

Total

Pharmaceuticals

2,509,938‌

PRODUCTS

&

DEVICES

19.4%

Capital

Equipment

0.4%

PROCEPT

BioRobotics  (1)

801,682‌

28,340‌

STERIS 

149,530‌

33,641‌

61,981‌

Implants

10.0%

Becton

Dickinson

&

Company 

879,973‌

232,322‌

Boston

Scientific  (1)

1,352,574‌

73,161‌

Intuitive

Surgical  (1)

1,785,117‌

610,403‌

iRhythm

Technologies  (1)

261,537‌

27,283‌

Stryker 

1,447,073‌

441,487‌

Teleflex 

271,726‌

65,766‌

Verily

Life

Sciences,

Series

B,

Acquisition

Date:

1/23/19,

Cost $13,998  (1)(2)(3)

113,564‌

17,108‌

Zimmer

Biomet

Holdings 

698,026‌

101,633‌

1,569,163‌

Other

Products

&

Devices

9.0%

10X

Genomics,

Class

A  (1)

1,264,562‌

70,613‌

Argenx,

ADR  (1)

741,980‌

289,172‌

Avantor  (1)

3,144,405‌

64,586‌

Catalent  (1)

1,017,567‌

44,122‌

Cooper 

119,389‌

45,777‌

T.

ROWE

PRICE

Health

Sciences

Fund

15

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Dexcom  (1)

974,862‌

125,280‌

Hologic  (1)

1,499,665‌

121,428‌

Inari

Medical  (1)

671,375‌

39,034‌

Insulet  (1)

413,986‌

119,369‌

Lantheus

Holdings  (1)

482,151‌

40,462‌

Nevro  (1)

289,782‌

7,366‌

Pax

Labs,

Class

A,

Acquisition

Date:

4/18/19,

Cost $31,622  (1)(2)

(3)

8,397,988‌

4,031‌

Penumbra (1)

799,318‌

275,014‌

Saluda

Medical,

Warrants,

1/20/27,

Acquisition

Date:

1/20/22,

Cost $—  (1)(2)(3)

103,592‌

298‌

Shockwave

Medical  (1)

520,729‌

148,621‌

Warby

Parker,

Class

A  (1)

751,609‌

8,786‌

1,403,959‌

Total

Products

&

Devices

3,035,103‌

SERVICES

19.3%

Distribution

0.1%

Option

Care

Health  (1)

540,095‌

17,548‌

17,548‌

Information

0.9%

Doximity,

Class

A  (1)

1,190,748‌

40,509‌

GeneDx

Holdings  (1)

30,614‌

182‌

GeneDx

Holdings,

Warrants,

7/22/26  (1)

216,369‌

2‌

Sophia

Genetics  (1)

683,363‌

3,062‌

Veeva

Systems,

Class

A  (1)

492,921‌

97,465‌

141,220‌

Other

Services

1.3%

Guardant

Health  (1)

1,522,099‌

54,491‌

West

Pharmaceutical

Services 

377,210‌

144,272‌

Wuxi

Biologics

Cayman

(HKD)  (1)

2,457,000‌

11,808‌

210,571‌

Payors

15.2%

Alignment

Healthcare  (1)

926,908‌

5,330‌

Centene  (1)

1,931,525‌

130,281‌

Cigna

Group 

657,790‌

184,576‌

Elevance

Health 

1,032,812‌

458,868‌

Humana 

600,150‌

268,345‌

Molina

Healthcare  (1)

733,286‌

220,895‌

UnitedHealth

Group 

2,318,956‌

1,114,583‌

2,382,878‌

Providers

1.8%

agilon

health  (1)

2,989,528‌

51,838‌

HCA

Healthcare 

560,133‌

169,989‌

T.

ROWE

PRICE

Health

Sciences

Fund

16

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Surgery

Partners  (1)

1,200,929‌

54,030‌

275,857‌

Total

Services

3,028,074‌

Total

Miscellaneous

Common

Stocks

 4.8%  (5)

750,553‌

Total

Common

Stocks

(Cost

$7,572,792)

14,856,738‌

CONVERTIBLE

PREFERRED

STOCKS

4.3%

BIOTECHNOLOGY

1.5%

Other

Biotechnology

1.5%

Arbor

Bio,

Series

B,

Acquisition

Date:

10/29/21,

Cost $8,828  (1)

(2)(3)

532,759‌

8,828‌

Cargo

Therapeutics,

Series

A-1,

Acquisition

Date:

2/22/23,

Cost $3,933  (1)(2)(3)

3,932,873‌

3,933‌

Chroma

Medicine,

Series

A,

Acquisition

Date:

10/12/21,

Cost $11,040  (1)(2)(3)

5,207,526‌

13,540‌

Chroma

Medicine,

Series

B,

Acquisition

Date:

2/8/23,

Cost $4,412  (1)(2)(3)

1,697,072‌

4,412‌

Delfi

Diagnostics,

Series

A,

Acquisition

Date:

1/12/21-4/7/22,

Cost $7,107  (1)(2)(3)

3,426,868‌

16,605‌

Delfi

Diagnostics,

Series

B,

Acquisition

Date:

6/10/22,

Cost $8,980  (1)(2)(3)

1,853,138‌

8,980‌

Eikon

Therapeutics,

Series

B,

Acquisition

Date:

12/3/21,

Cost $18,021  (1)(2)(3)

1,018,820‌

21,904‌

Eikon

Therapeutics,

Series

C,

Acquisition

Date:

5/18/23,

Cost $4,262  (1)(2)(3)

198,249‌

4,262‌

EndeavorBio,

Series

B,

Acquisition

Date:

1/21/22,

Cost $8,808  (1)

(2)(3)

1,867,734‌

8,808‌

FOG

Pharma,

Acquisition

Date:

11/17/22,

Cost $6,621  (1)(2)(3)

615,203‌

6,621‌

FOG

Pharma,

Series

C,

Acquisition

Date:

1/11/21-8/2/21,

Cost $6,251  (1)(2)(3)

431,391‌

4,643‌

Generate

Bio,

Series

B,

Acquisition

Date:

9/2/21,

Cost $22,096  (1)

(2)(3)

1,864,632‌

22,096‌

Generate

Bio,

Series

C,

Acquisition

Date:

5/9/23,

Cost $4,412  (1)

(2)(3)

372,360‌

4,412‌

Genesis

Therapeutics,

Series

A,

Acquisition

Date:

11/24/20,

Cost $4,236  (1)(2)(3)

829,412‌

4,236‌

Insitro,

Series

B,

Acquisition

Date:

5/21/20,

Cost $5,505  (1)(2)(3)

883,580‌

16,162‌

Insitro,

Series

C,

Acquisition

Date:

4/7/21,

Cost $10,762  (1)(2)(3)

588,382‌

10,762‌

Laronde,

Series

B,

Acquisition

Date:

7/28/21,

Cost $32,757  (1)(2)

(3)

1,169,887‌

6,552‌

Odyssey

Therapeutics,

Series

B,

Acquisition

Date:

5/13/22,

Cost $7,048  (1)(2)(3)

1,115,915‌

7,048‌

Ring

Therapeutics,

Acquisition

Date:

10/7/22,

Cost $4,414  (1)(2)

(3)

479,818‌

4,414‌

T.

ROWE

PRICE

Health

Sciences

Fund

17

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Ring

Therapeutics,

Series

B,

Acquisition

Date:

4/12/21,

Cost $9,004  (1)(2)(3)

978,705‌

9,004‌

SalioGen

Therapeutics,

Series

B,

Acquisition

Date:

12/10/21,

Cost $11,024  (1)(2)(3)

104,129‌

11,024‌

Scribe

Therapeutics,

Series

B,

Acquisition

Date:

3/17/21,

Cost $6,219  (1)(2)(3)

1,027,755‌

6,219‌

Sionna

Therapeutics,

Series

B,

Acquisition

Date:

2/2/22,

Cost $5,284  (1)(2)(3)

541,277‌

5,284‌

Tessera

Therapeutics,

Series

C,

Acquisition

Date:

2/25/22,

Cost $7,915  (1)(2)(3)

387,032‌

7,915‌

Treeline

Biosciences,

Series

A,

Acquisition

Date:

4/9/21-9/26/22,

Cost $18,552  (1)(2)(3)

2,370,150‌

18,552‌

Total

Biotechnology

236,216‌

CONSUMER

NONDURABLES

0.3%

Biotechnology

0.1%

Nutcracker

Therapeutics,

Series

C,

Acquisition

Date:

8/27/21,

Cost $11,050  (1)(2)(3)

1,027,785‌

11,050‌

11,050‌

Healthcare

Services

0.2%

Capsule,

Series

1-D,

Acquisition

Date:

4/7/21,

Cost $12,364  (1)(2)

(3)

853,213‌

2,501‌

Capsule,

Series

E,

Acquisition

Date:

1/10/23,

Cost $2,658  (1)(2)(3)

906,656‌

2,658‌

Color

Health,

Series

D,

Acquisition

Date:

12/17/20,

Cost $11,180  (1)(2)(3)

296,922‌

12,144‌

Color

Health,

Series

D-1,

Acquisition

Date:

1/13/20,

Cost $9,358  (1)(2)(3)

438,696‌

17,942‌

Color

Health,

Series

E,

Acquisition

Date:

10/26/21,

Cost $4,414  (1)

(2)(3)

44,149‌

1,806‌

37,051‌

Total

Consumer

Nondurables

48,101‌

LIFE

SCIENCES

1.1%

Life

Sciences

1.1%

Cellanome,

Series

A,

Acquisition

Date:

12/30/21,

Cost $11,023  (1)

(2)(3)(6)

1,993,387‌

13,874‌

Chromacode,

Series

D-1,

Acquisition

Date:

2/28/22,

Cost $2,202  (1)(2)(3)

3,137,582‌

1,443‌

Chromacode,

Series

D-2,

Acquisition

Date:

2/28/22,

Cost $2,202  (1)(2)(3)

3,137,581‌

2,202‌

Clear

Labs,

Series

C,

Acquisition

Date:

5/13/21,

Cost $13,294  (1)

(2)(3)

3,830,773‌

7,738‌

DNA

Script,

Series

C,

Acquisition

Date:

12/16/21,

Cost $21,371

(EUR)  (1)(2)(3)

25,201‌

20,624‌

Element

Biosciences,

Series

C,

Acquisition

Date:

6/21/21,

Cost $17,704  (1)(2)(3)

861,217‌

17,704‌

T.

ROWE

PRICE

Health

Sciences

Fund

18

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Inscripta,

Series

E,

Acquisition

Date:

3/30/21,

Cost $12,829  (1)(2)

(3)

1,452,941‌

4,228‌

Lumicks

Tech,

Series

D,

Acquisition

Date:

4/14/21,

Cost $8,875  (1)(2)(3)

4,954‌

6,684‌

National

Resilience,

Series

B,

Acquisition

Date:

10/23/20,

Cost $16,458  (1)(2)(3)

1,204,832‌

73,169‌

National

Resilience,

Series

C,

Acquisition

Date:

6/9/21,

Cost $18,957  (1)(2)(3)

426,855‌

25,923‌

Total

Life

Sciences

173,589‌

PRODUCTS

&

DEVICES

0.3%

Capital

Equipment

0.1%

Reflexion

Medical,

Series

C,

Acquisition

Date:

4/3/18,

Cost $4,243  (1)(2)(3)

2,507,885‌

5,945‌

Reflexion

Medical,

Series

D,

Acquisition

Date:

4/3/20,

Cost $2,142  (1)(2)(3)

1,123,437‌

2,663‌

Reflexion

Medical,

Series

E,

Acquisition

Date:

3/1/22,

Cost $4,403  (1)(2)(3)

1,857,286‌

4,403‌

13,011‌

Implants

0.1%

Kardium,

Series

D-5,

Acquisition

Date:

11/29/18,

Cost $8,574  (1)

(2)(3)(6)

8,849,057‌

8,989‌

Kardium,

Series

D-6,

Acquisition

Date:

1/8/21,

Cost $12,516  (1)

(2)(3)(6)

12,320,393‌

12,516‌

21,505‌

Other

Products

&

Devices

0.1%

Saluda

Medical,

Series

D,

Acquisition

Date:

1/20/22,

Cost $8,809  (1)(2)(3)

690,617‌

6,133‌

Saluda

Medical,

Series

E,

Acquisition

Date:

4/6/23,

Cost $4,353  (1)(2)(3)

539,186‌

4,353‌

10,486‌

Total

Products

&

Devices

45,002‌

SERVICES

1.1%

Information

0.0%

Cleerly,

Series

C,

Acquisition

Date:

7/8/22,

Cost $6,904  (1)(2)(3)

586,029‌

6,904‌

6,904‌

Other

Services

1.1%

Caris

Life

Sciences,

Series

C,

Acquisition

Date:

8/14/20,

Cost $10,374  (1)(2)(3)

3,758,668‌

20,109‌

Caris

Life

Sciences,

Series

D,

Acquisition

Date:

5/11/21,

Cost $18,471  (1)(2)(3)

2,280,334‌

12,200‌

Freenome

Holdings,

Series

B,

Acquisition

Date:

6/24/19,

Cost $7,103  (1)(2)(3)

1,558,570‌

18,189‌

T.

ROWE

PRICE

Health

Sciences

Fund

19

Shares

$

Value

(Cost

and

value

in

$000s)

‡

Freenome

Holdings,

Series

C,

Acquisition

Date:

8/14/20,

Cost $6,139  (1)(2)(3)

928,231‌

10,832‌

Freenome

Holdings,

Series

D,

Acquisition

Date:

11/22/21,

Cost $3,971  (1)(2)(3)

526,504‌

6,144‌

PrognomIQ,

Series

A-4,

Acquisition

Date:

11/15/19,

Cost $1,356  (1)(2)(3)(6)

593,540‌

1,816‌

PrognomIQ,

Series

A-5,

Acquisition

Date:

5/12/20,

Cost $1,174  (1)

(2)(3)(6)

513,797‌

1,572‌

PrognomIQ,

Series

B,

Acquisition

Date:

9/11/20,

Cost $8,533  (1)

(2)(3)(6)

3,734,140‌

11,427‌

PrognomIQ,

Series

C,

Acquisition

Date:

2/16/22,

Cost $3,498  (1)

(2)(3)(6)

1,143,244‌

3,498‌

Tempus

Labs,

Series

D,

Acquisition

Date:

3/16/18,

Cost $8,876  (1)

(2)(3)

946,886‌

37,288‌

Tempus

Labs,

Series

E,

Acquisition

Date:

8/23/18,

Cost $10,607  (1)(2)(3)

633,505‌

26,240‌

Tempus

Labs,

Series

F,

Acquisition

Date:

4/30/19,

Cost $4,279  (1)

(2)(3)

172,826‌

7,380‌

Tempus

Labs,

Series

G,

Acquisition

Date:

2/6/20,

Cost $4,285  (1)

(2)(3)

111,715‌

4,938‌

Tempus

Labs,

Series

G-2,

Acquisition

Date:

11/19/20,

Cost $6,720  (1)(2)(3)

117,271‌

4,229‌

165,862‌

Providers

0.0%

Honor

Technology,

Series

D,

Acquisition

Date:

10/16/20,

Cost $7,540  (1)(2)(3)

3,130,941‌

3,413‌

Honor

Technology,

Series

E,

Acquisition

Date:

9/29/21,

Cost $6,626  (1)(2)(3)

2,095,807‌

2,284‌

5,697‌

Total

Services

178,463‌

Total

Convertible

Preferred

Stocks

(Cost

$574,926)

681,371‌

PREFERRED

STOCKS

0.4%

LIFE

SCIENCES

0.4%

Life

Sciences

0.4%

Sartorius

(EUR) 

183,731‌

63,655‌

Total

Life

Sciences

63,655‌

Total

Preferred

Stocks

(Cost

$26,380)

63,655‌

T.

ROWE

PRICE

Health

Sciences

Fund

20

Shares

$

Value

(Cost

and

value

in

$000s)

‡

SHORT-TERM

INVESTMENTS

0.5%

Money

Market

Funds

0.5%

T.

Rowe

Price

Government

Reserve

Fund,

5.13%  (6)(7)

71,875,596‌

71,876‌

Total

Short-Term

Investments

(Cost

$71,876)

71,876‌

Total

Investments

in

Securities

100.0%

of

Net

Assets

(Cost

$8,245,974)

$

15,673,640‌

‡

Shares

are

denominated

in

U.S.

dollars

unless

otherwise

noted.

(1)

Non-income

producing

(2)

See

Note

2.

Level

3

in

fair

value

hierarchy.

(3)

Security

cannot

be

offered

for

public

resale

without

first

being

registered

under

the

Securities

Act

of

1933

and

related

rules

("restricted

security").

Acquisition

date

represents

the

day

on

which

an

enforceable

right

to

acquire

such

security

is

obtained

and

is

presented

along

with

related

cost

in

the

security

description.

The

fund

may

have

registration

rights

for

certain

restricted

securities.

Any

costs

related

to

such

registration

are

generally

borne

by

the

issuer.

The

aggregate

value

of

restricted

securities

(excluding

144A

holdings)

at

period

end

amounts

to

$732,534

and

represents

4.7%

of

net

assets.

(4)

All

or

a

portion

of

the

position

represents

an

unfunded

commitment;

a

liability

to

fund

the

commitment

has

been

recognized.

The

fund's

total

unfunded

commitment

at

June

30,

2023,

was

$4,781

and

was

valued

at

$5,920

(0.0%

of

net

assets).

(5)

The

identity

of

certain

securities

has

been

concealed

to

protect

the

fund

while

it

completes

a

purchase

or

selling

program

for

the

securities.

(6)

Affiliated

Companies

(7)

Seven-day

yield

ADR

American

Depositary

Receipts

CHF

Swiss

Franc

DKK

Danish

Krone

EC

Escrow

CUSIP;

represents

a

beneficial

interest

in

a

residual

pool

of

assets;

the

amount

and

timing

of

future

distributions,

if

any,

is

uncertain;

when

presented,

interest

rate

and

maturity

date

are

those

of

the

original

security.

EUR

Euro

HKD

Hong

Kong

Dollar

JPY

Japanese

Yen

PIPE

Private

Investment

in

Public

Equity

T.

ROWE

PRICE

Health

Sciences

Fund

21

AFFILIATED

COMPANIES

($000s)

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,

or

a

company

that

is

under

common

ownership

or

control.

The

following

securities

were

considered

affiliated

companies

for

all

or

some

portion

of

the

six

months

ended

June

30,

2023.

Net

realized

gain

(loss),

investment

income,

change

in

net

unrealized

gain/loss,

and

purchase

and

sales

cost

reflect

all

activity

for

the

period

then

ended.

Affiliate

Net

Realized

Gain

(Loss)

Change

in

Net

Unrealized

Gain/Loss

Investment

Income

Cellanome,

Series

A 

$

—‌

$

—‌

$

—‌

Chroma

Medicine,

Series

A 

—‌

2,500‌

—‌

Chroma

Medicine,

Series

B 

—‌

—‌

—‌

Chromacode,

Series

D-1 

—‌

(597‌)

—‌

Chromacode,

Series

D-2 

—‌

509‌

—‌

Clear

Labs,

Series

C 

—‌

(5,556‌)

—‌

Cleerly,

Series

C 

—‌

—‌

—‌

Kardium,

Series

D-5 

—‌

—‌

—‌

Kardium,

Series

D-6 

—‌

—‌

—‌

PrognomIQ,

Series

A-4 

—‌

—‌

—‌

PrognomIQ,

Series

A-5 

—‌

—‌

—‌

PrognomIQ,

Series

B 

—‌

—‌

—‌

PrognomIQ,

Series

C 

—‌

—‌

—‌

T.

Rowe

Price

Government

Reserve

Fund,

5.13%

—‌

—‌

512‌

Totals

$

—‌#

$

(3,144‌)

$

512‌+

T.

ROWE

PRICE

Health

Sciences

Fund

22

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

AFFILIATED

COMPANIES

(CONTINUED)

($000s)

Supplementary

Investment

Schedule

Affiliate

Value

12/31/22

Purchase

Cost

Sales

Cost

Value

06/30/23

Cellanome,

Series

A 

$

13,874‌

$

—‌

$

—‌

$

13,874‌

Chroma

Medicine,

Series

A 

11,040‌

—‌

—‌

*

Chroma

Medicine,

Series

B 

—‌

4,412‌

—‌

*

Chromacode,

Series

D-1 

*

—‌

—‌

*

Chromacode,

Series

D-2 

*

—‌

—‌

*

Clear

Labs,

Series

C 

*

—‌

—‌

*

Cleerly,

Series

C 

*

—‌

—‌

*

Kardium,

Series

D-5 

8,989‌

—‌

—‌

8,989‌

Kardium,

Series

D-6 

12,516‌

—‌

—‌

12,516‌

PrognomIQ,

Series

A-4 

1,816‌

—‌

—‌

1,816‌

PrognomIQ,

Series

A-5 

1,572‌

—‌

—‌

1,572‌

PrognomIQ,

Series

B 

11,427‌

—‌

—‌

11,427‌

PrognomIQ,

Series

C 

3,498‌

—‌

—‌

3,498‌

T.

Rowe

Price

Government

Reserve

Fund,

5.13%

158,976‌

  ¤

  ¤

71,876‌

Total

$

125,568‌^

#

Capital

gain

distributions

from

underlying

Price

funds

represented

$0

of

the

net

realized

gain

(loss).

+

Investment

income

comprised

$512

of

dividend

income

and

$0

of

interest

income.

¤

Purchase

and

sale

information

not

shown

for

cash

management

funds.

^

The

cost

basis

of

investments

in

affiliated

companies

was

$118,550.

*

On

the

date

indicated,

issuer

was

held

but

not

considered

an

affiliated

company.

T.

ROWE

PRICE

Health

Sciences

Fund

June

30,

2023

(Unaudited)

Statement

of

Assets

and

Liabilities

23

($000s,

except

shares

and

per

share

amounts)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Assets

Investments

in

securities,

at

value

(cost

$8,245,974)

$

15,673,640‌

Receivable

for

investment

securities

sold

52,972‌

Receivable

for

shares

sold

8,213‌

Dividends

receivable

7,176‌

Foreign

currency

(cost

$354)

355‌

Other

assets

5,691‌

Total

assets

15,748,047‌

Liabilities

Payable

for

investment

securities

purchased

54,058‌

Payable

for

shares

redeemed

11,985‌

Investment

management

fees

payable

8,198‌

Due

to

affiliates

612‌

Payable

to

directors

14‌

Other

liabilities

1,717‌

Total

liabilities

76,584‌

NET

ASSETS

$

15,671,463‌

Net

Assets

Consist

of:

Total

distributable

earnings

(loss)

$

7,845,301‌

Paid-in

capital

applicable

to

172,547,075

shares

of

$0.0001

par

value

capital

stock

outstanding;

1,000,000,000

shares

authorized

7,826,162‌

NET

ASSETS

$

15,671,463‌

NET

ASSET

VALUE

PER

SHARE

Investor

Class

(Net

assets:

$9,808,324;

Shares

outstanding:

108,059,775)

$

90.77‌

I

Class

(Net

assets:

$5,863,139;

Shares

outstanding:

64,487,300)

$

90.92‌

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Statement

of

Operations

24

($000s)

6

Months

Ended

6/30/23

Investment

Income

(Loss)

Income

Dividend

(net

of

foreign

taxes

of

$716)

$

58,621‌

Other

14‌

Total

income

58,635‌

Expenses

Investment

management

49,862‌

Shareholder

servicing

Investor

Class

$

7,188‌

I

Class

664‌

7,852‌

Prospectus

and

shareholder

reports

Investor

Class

269‌

I

Class

33‌

302‌

Custody

and

accounting

226‌

Proxy

and

annual

meeting

206‌

Directors

28‌

Legal

and

audit

25‌

Miscellaneous

328‌

Total

expenses

58,829‌

Net

investment

loss

(194‌)

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Statement

of

Operations

25

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

Months

Ended

6/30/23

Realized

and

Unrealized

Gain

/

Loss

–

Net

realized

gain

(loss)

Securities

612,636‌

Foreign

currency

transactions

(565‌)

Net

realized

gain

612,071‌

Change

in

net

unrealized

gain

/

loss

Securities

(446,952‌)

Other

assets

and

liabilities

denominated

in

foreign

currencies

149‌

Change

in

net

unrealized

gain

/

loss

(446,803‌)

Net

realized

and

unrealized

gain

/

loss

165,268‌

INCREASE

IN

NET

ASSETS

FROM

OPERATIONS

$

165,074‌

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Statement

of

Changes

in

Net

Assets

26

($000s)

6

Months

Ended

6/30/23

Year

Ended

12/31/22

Increase

(Decrease)

in

Net

Assets

Operations

Net

investment

loss

$

(194‌)

$

(8,282‌)

Net

realized

gain

(loss)

612,071‌

(14,597‌)

Change

in

net

unrealized

gain

/

loss

(446,803‌)

(2,384,261‌)

Increase

(decrease)

in

net

assets

from

operations

165,074‌

(2,407,140‌)

Distributions

to

shareholders

Net

earnings

Investor

Class

–‌

(179,171‌)

I

Class

–‌

(103,404‌)

Decrease

in

net

assets

from

distributions

–‌

(282,575‌)

Capital

share

transactions

*

Shares

sold

Investor

Class

387,032‌

1,236,166‌

I

Class

216,987‌

4,332,246‌

Distributions

reinvested

Investor

Class

–‌

172,182‌

I

Class

–‌

97,063‌

Shares

redeemed

Investor

Class

(915,030‌)

(5,916,581‌)

I

Class

(355,591‌)

(567,212‌)

Decrease

in

net

assets

from

capital

share

transactions

(666,602‌)

(646,136‌)

T.

ROWE

PRICE

Health

Sciences

Fund

(Unaudited)

Statement

of

Changes

in

Net

Assets

27

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

Months

Ended

6/30/23

Year

Ended

12/31/22

Net

Assets

Decrease

during

period

(501,528‌)

(3,335,851‌)

Beginning

of

period

16,172,991‌

19,508,842‌

End

of

period

$

15,671,463‌

$

16,172,991‌

*Share

information

(000s)

Shares

sold

Investor

Class

4,347‌

13,681‌

I

Class

2,423‌

49,285‌

Distributions

reinvested

Investor

Class

–‌

1,895‌

I

Class

–‌

1,067‌

Shares

redeemed

Investor

Class

(10,240‌)

(67,007‌)

I

Class

(3,980‌)

(6,369‌)

Decrease

in

shares

outstanding

(7,450‌)

(7,448‌)

T.

ROWE

PRICE

Health

Sciences

Fund

Unaudited

NOTES

TO

FINANCIAL

STATEMENTS

28

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. The

fund

seeks

long-term

capital

appreciation.

The

fund

has

two classes

of

shares:

the

Health

Sciences

Fund

(Investor

Class)

and

the

Health

Sciences

Fund–I

Class

(I

Class).

I

Class

shares

require

a

$500,000

initial

investment

minimum,

although

the

minimum

generally

is

waived

or

reduced

for

financial

intermediaries,

eligible

retirement

plans,

and

certain

other

accounts. Each

class

has

exclusive

voting

rights

on

matters

related

solely

to

that

class;

separate

voting

rights

on

matters

that

relate

to

both classes;

and,

in

all

other

respects,

the

same

rights

and

obligations

as

the

other

class.

NOTE

1

-

SIGNIFICANT

ACCOUNTING

POLICIES 

Basis

of

Preparation

 The fund

is

an

investment

company

and

follows

accounting

and

reporting

guidance

in

the

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946

(ASC

946).

The

accompanying

financial

statements

were

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(GAAP),

including,

but

not

limited

to,

ASC

946.

GAAP

requires

the

use

of

estimates

made

by

management.

Management

believes

that

estimates

and

valuations

are

appropriate;

however,

actual

results

may

differ

from

those

estimates,

and

the

valuations

reflected

in

the

accompanying

financial

statements

may

differ

from

the

value

ultimately

realized

upon

sale

or

maturity.

Investment

Transactions,

Investment

Income,

and

Distributions

 Investment

transactions

are

accounted

for

on

the

trade

date

basis.

Income

and

expenses

are

recorded

on

the

accrual

basis.

Realized

gains

and

losses

are

reported

on

the

identified

cost

basis.

Income

tax-related

interest

and

penalties,

if

incurred,

are

recorded

as

income

tax

expense.

Dividends

received

from other

investment

companies are

reflected

as

dividend

income;

capital

gain

distributions

are

reflected

as

realized

gain/loss.

Dividend

income and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Non-cash

dividends,

if

any,

are

recorded

at

the

fair

market

value

of

the

asset

received.

Proceeds

from

litigation

payments,

if

any,

are

included

in

either

net

realized

gain

(loss)

or

change

in

net

unrealized

gain/loss

from

securities.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Income

distributions,

if

any,

are

declared

and

paid

by

each

class annually.

A

capital

gain

distribution,

if

any, may

also

be

declared

and

paid

by

the

fund

annually.

T.

ROWE

PRICE

Health

Sciences

Fund

29

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

asked

prices

of

such

currencies

against

U.S.

dollars

as

provided

by

an

outside

pricing

service.

Purchases

and

sales

of

securities,

income,

and

expenses

are

translated

into

U.S.

dollars

at

the

prevailing

exchange

rate

on

the

respective

date

of

such

transaction.

The

effect

of

changes

in

foreign

currency

exchange

rates

on

realized

and

unrealized

security

gains

and

losses

is

not

bifurcated

from

the

portion

attributable

to

changes

in

market

prices.

Class

Accounting

 Shareholder

servicing,

prospectus,

and

shareholder

report

expenses

incurred

by

each

class

are

charged

directly

to

the

class

to

which

they

relate.

Expenses

common

to

all

classes,

investment

income,

and

realized

and

unrealized

gains

and

losses

are

allocated

to

the

classes

based

upon

the

relative

daily

net

assets

of

each

class.

Capital

Transactions

 Each

investor’s

interest

in

the

net

assets

of the

fund

is

represented

by

fund

shares. The

fund’s

net

asset

value

(NAV)

per

share

is

computed

at

the

close

of

the

New

York

Stock

Exchange

(NYSE),

normally

4

p.m.

ET,

each

day

the

NYSE

is

open

for

business.

However,

the

NAV

per

share

may

be

calculated

at

a

time

other

than

the

normal

close

of

the

NYSE

if

trading

on

the

NYSE

is

restricted,

if

the

NYSE

closes

earlier,

or

as

may

be

permitted

by

the

SEC.

Purchases

and

redemptions

of

fund

shares

are

transacted

at

the

next-computed

NAV

per

share,

after

receipt

of

the

transaction

order

by

T.

Rowe

Price

Associates,

Inc.,

or

its

agents.

New

Accounting

Guidance

 In

June

2022,

the

FASB

issued

Accounting

Standards

Update

(ASU),

ASU

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions,

which

clarifies

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

is

not

considered

in

measuring

fair

value.

The

amendments

under

this

ASU

are

effective

for

fiscal

years

beginning

after

December

15,

2023;

however,

the

fund

opted

to

early

adopt,

as

permitted,

effective

December

1,

2022. Adoption

of

the

guidance

did not

have

a

material

impact

on

the fund's

financial  statements.

Indemnification

 In

the

normal

course

of

business, the

fund

may

provide

indemnification

in

connection

with

its

officers

and

directors,

service

providers,

and/or

private

company

investments. The

fund’s

maximum

exposure

under

these

arrangements

is

unknown;

however,

the

risk

of

material

loss

is

currently

considered

to

be

remote.

T.

ROWE

PRICE

Health

Sciences

Fund

30

NOTE

2

-

VALUATION 

Fair

Value

  The

fund’s

financial

instruments

are

valued

at

the

close

of

the

NYSE

and

are

reported

at

fair

value,

which

GAAP

defines

as

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date. The fund’s

Board

of

Directors

(the

Board)

has

designated

T.

Rowe

Price

Associates,

Inc.

as

the

fund’s

valuation

designee

(Valuation

Designee).

Subject

to

oversight

by

the

Board,

the

Valuation

Designee

performs

the

following

functions

in

performing

fair

value

determinations:

assesses

and

manages

valuation

risks;

establishes

and

applies

fair

value

methodologies;

tests

fair

value

methodologies;

and

evaluates

pricing

vendors

and

pricing

agents.

The

duties

and

responsibilities

of

the

Valuation

Designee

are

performed

by

its

Valuation

Committee. The

Valuation

Designee provides

periodic

reporting

to

the

Board

on

valuation

matters.

Various

valuation

techniques

and

inputs

are

used

to

determine

the

fair

value

of

financial

instruments.

GAAP

establishes

the

following

fair

value

hierarchy

that

categorizes

the

inputs

used

to

measure

fair

value:

Level

1

–

quoted

prices

(unadjusted)

in

active

markets

for

identical

financial

instruments

that

the

fund

can

access

at

the

reporting

date

Level

2

–

inputs

other

than

Level

1

quoted

prices

that

are

observable,

either

directly

or

indirectly

(including,

but

not

limited

to,

quoted

prices

for

similar

financial

instruments

in

active

markets,

quoted

prices

for

identical

or

similar

financial

instruments

in

inactive

markets,

interest

rates

and

yield

curves,

implied

volatilities,

and

credit

spreads)

Level

3

–

unobservable

inputs

(including

the Valuation

Designee’s assumptions

in

determining

fair

value)

Observable

inputs

are

developed

using

market

data,

such

as

publicly

available

information

about

actual

events

or

transactions,

and

reflect

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

Unobservable

inputs

are

those

for

which

market

data

are

not

available

and

are

developed

using

the

best

information

available

about

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

GAAP

requires

valuation

techniques

to

maximize

the

use

of

relevant

observable

inputs

and

minimize

the

use

of

unobservable

inputs.

When

multiple

inputs

are

used

to

derive

fair

value,

the

financial

instrument

is

assigned

to

the

level

within

the

fair

value

hierarchy

based

on

the

lowest-level

input

that

is

significant

to

the

fair

value

of

the

financial

instrument.

Input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level

but

rather

the

degree

of

judgment

used

in

determining

those

values.

T.

ROWE

PRICE

Health

Sciences

Fund

31

Valuation

Techniques 

Equity

securities,

including

exchange-traded

funds, listed

or

regularly

traded

on

a

securities

exchange

or

in

the

over-the-counter

(OTC)

market

are

valued

at

the

last

quoted

sale

price

or,

for

certain

markets,

the

official

closing

price

at

the

time

the

valuations

are

made.

OTC

Bulletin

Board

securities

are

valued

at

the

mean

of

the

closing

bid

and

asked

prices.

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

closing

bid

and

asked

prices

for

domestic

securities

and

the

last

quoted

sale

or

closing

price

for

international

securities.

The

last

quoted

prices

of

non-U.S.

equity

securities

may

be

adjusted

to

reflect

the

fair

value

of

such

securities

at

the

close

of

the

NYSE,

if

the Valuation

Designee

determines

that

developments

between

the

close

of

a

foreign

market

and

the

close

of

the

NYSE

will

affect

the

value

of

some

or

all

of the

fund’s

portfolio

securities.

Each

business

day,

the

Valuation

Designee uses

information

from

outside

pricing

services

to

evaluate

the

quoted

prices

of

portfolio

securities

and,

if

appropriate,

decide whether

it

is

necessary

to

adjust

quoted

prices

to

reflect

fair

value

by

reviewing

a

variety

of

factors,

including

developments

in

foreign

markets,

the

performance

of

U.S.

securities

markets,

and

the

performance

of

instruments

trading

in

U.S.

markets

that

represent

foreign

securities

and

baskets

of

foreign

securities. The Valuation

Designee

uses

outside

pricing

services

to

provide

it

with

quoted

prices

and

information

to

evaluate

or

adjust

those

prices.

The Valuation

Designee

cannot

predict

how

often

it

will

use

quoted

prices

and

how

often

it

will

determine

it

necessary

to

adjust

those

prices

to

reflect

fair

value.

Investments

in

mutual

funds

are

valued

at

the

mutual

fund’s

closing

NAV

per

share

on

the

day

of

valuation.

Assets

and

liabilities

other

than

financial

instruments,

including

short-term

receivables

and

payables,

are

carried

at

cost,

or

estimated

realizable

value,

if

less,

which

approximates

fair

value. 

Investments

for

which

market

quotations are

not

readily

available

or

deemed

unreliable

are

valued

at

fair

value

as

determined

in

good

faith

by

the

Valuation

Designee.

The

Valuation

Designee

has

adopted

methodologies

for

determining

the

fair

value

of

investments

for

which

market

quotations

are

not

readily

available

or

deemed

unreliable,

including

the

use

of

other

pricing

sources.

Factors

used

in

determining

fair

value

vary

by

type

of

investment

and

may

include

market

or

investment

specific

considerations.

The

Valuation

Designee typically

will

afford

greatest

weight

to

actual

prices

in

arm’s

length

transactions,

to

the

extent

they

represent

orderly

transactions

between

market

participants,

transaction

information

can

be

reliably

obtained,

and

prices

are

deemed

representative

of

fair

value.

However,

the

Valuation

Designee may

also

consider

other

valuation

methods

such

as

market-based

valuation

multiples;

a

discount

or

premium

from

market

value

of

a

similar,

freely

traded

security

of

the

same

issuer;

discounted

cash

T.

ROWE

PRICE

Health

Sciences

Fund

32

flows;

yield

to

maturity;

or

some

combination.

Fair

value

determinations

are

reviewed

on

a

regular

basis.

Because

any

fair

value

determination

involves

a

significant

amount

of

judgment,

there

is

a

degree

of

subjectivity

inherent

in

such

pricing

decisions. Fair

value

prices

determined

by

the

Valuation

Designee could

differ

from

those

of

other

market

participants,

and

it

is

possible

that

the

fair

value

determined

for

a

security

may

be

materially

different

from

the

value

that

could

be

realized

upon

the

sale

of

that

security.

Valuation

Inputs

  The

following

table

summarizes

the

fund’s

financial

instruments,

based

on

the

inputs

used

to

determine

their

fair

values

on

June

30,

2023

(for

further

detail

by

category,

please

refer

to

the

accompanying

Portfolio

of

Investments):

Following

is

a

reconciliation

of

the

fund’s

Level

3

holdings

for

the

six

months ended

June

30,

2023.

Gain

(loss)

reflects

both

realized

and

change

in

unrealized

gain/loss

on

Level

3

holdings

during

the

period,

if

any,

and

is

included

on

the

accompanying

Statement

of

Operations.

The

change

in

unrealized

gain/loss

on

Level

3

instruments

held

at

June

30,

2023,

totaled $(68,988,000) for

the

six

months ended

June

30,

2023.

o

($000s)

Level

1

Level

2

Level

3

Total

Value

Assets

Common

Stocks

$

14,463,645‌

$

348,837‌

$

44,256‌

$

14,856,738‌

Convertible

Preferred

Stocks

—‌

—‌

681,371‌

681,371‌

Preferred

Stocks

—‌

63,655‌

—‌

63,655‌

Short-Term

Investments

71,876‌

—‌

—‌

71,876‌

Total

$

14,535,521‌

$

412,492‌

$

725,627‌

$

15,673,640‌

($000s)

Beginning

Balance

12/31/22

Gain

(Loss)

During

Period

Total

Purchases

Total

Sales

Transfer

Into

Level

3

Ending

Balance

6/30/23

Investment

in

Securities

Common

Stocks

$

60,839‌

$

14,713‌

$

—‌

$

(31,310‌)

$

14‌

$

44,256‌

Convertible

Preferred

Stocks

714,986‌

(70,010‌)

36,395‌

—‌

—‌

681,371‌

Total

$

775,825‌

$

(55,297‌)

$

36,395‌

$

(31,310‌)

$

14‌

$

725,627‌

T.

ROWE

PRICE

Health

Sciences

Fund

33

In

accordance

with

GAAP,

the

following

table

provides

quantitative

information

about

significant

unobservable

inputs

used

to

determine

the

fair

valuations

of

the

fund’s

Level

3

assets,

by

class

of

financial

instrument.

Because

the

Valuation

Designee

considers

a

wide

variety

of

factors

and

inputs,

both

observable

and

unobservable,

in

determining

fair

values,

the

unobservable

inputs

presented

do

not

reflect

all

inputs

significant

to

the

fair

value

determination.

Investments

in

Securities

Value

(000s)

Valuation

Technique(s)+

Significant

Unobservable

Input(s)

Value

or

Range

of

Input(s)

Weighted

Average

of

Input(s)*

Impact

to

Valuation

from

an

Increase

in

Input**

Common

Stocks

$

44,256‌

Recent

comparable

transaction

price(s)

—#

—#

—#

—#

Discount

for

uncertainty

5%

-

100%

50%

Decrease

Market

comparable

Enterprise

value

to

sales

multiple

1.9x

1.9x

Increase

Enterprise

value

to

gross

profit

multiple

4.7x

4.7x

Increase

Discount

rate

for

cost

of

capital

6%

6%

Decrease

Discount

for

lack

of

marketability

10%

10%

Decrease

Expected

present

value

Discount

rate

for

cost

of

equity

5%

-

25%

11%

Decrease

Discount

for

regulatory

uncertainty

29%

29%

Decrease

Options

pricing

model

Private

company

valuation

—#

—#

—#

Risk-free

rate

4%

4%

Increase

T.

ROWE

PRICE

Health

Sciences

Fund

34

Investments

in

Securities

Value

(000s)

Valuation

Technique(s)+

Significant

Unobservable

Input(s)

Value

or

Range

of

Input(s)

Weighted

Average

of

Input(s)*

Impact

to

Valuation

from

an

Increase

in

Input**

Volatility

53%

53%

Increase

Convertible

Preferred

Stocks

$

681,371‌

Recent

comparable

transaction

price(s)

—#

—#

—#

—#

Premium

for

conversion

ratio

rights

8%

8%

Increase

Premium

for

cumulative

preferred

dividend

rights

9%

-

23%

13%

Increase

Market

comparable

Enterprise

value

to

sales

multiple

1.5x

–

5.0x

3.8x

Increase

Sales

growth

rate

(58%)

-

49%

5%

Increase

Enterprise

value

to

gross

profit

multiple

3.7x

–

9.9x

7.3x

Increase

Gross

profit

growth

rate

35%

35%

Increase

Projected

enterprise

value

to

sales

multiple

6.5x

–

7.9x

7.2x

Increase

Rate

of

return

40%

40%

Decrease

Discount

rate

for

cost

of

capital

15%

15%

Decrease

Discount

for

uncertainty

80%

80%

Decrease

Discount

for

lack

of

marketability

10%

10%

Decrease

T.

ROWE

PRICE

Health

Sciences

Fund

35

+

Valuation

techniques

may

change

in

order

to

reflect the

Valuation

Designee’s

judgment

of

current

market

participant

assumptions. 

*

Unobservable

inputs

were

weighted

by

the

relative

fair

value

of

the

instruments.

**

Represents

the

directional

change

in

the

fair

value

of

the

Level

3

investment(s)

that

would

have

resulted

from

an

increase

in

the

corresponding

input

at

period

end.

A

decrease

in

the

unobservable

input

would

have

had

the

opposite

effect.

Significant

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

#

No

quantitative

unobservable

inputs

significant

to

the

valuation

technique

were

created

by

the

Valuation

Designee.

NOTE

3

-

OTHER

INVESTMENT

TRANSACTIONS 

Consistent

with

its

investment

objective,

the

fund

engages

in

the

following

practices

to

manage

exposure

to

certain

risks

and/or

to

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.

Restricted

Securities

 The

fund

invests

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

Prompt

sale

of

such

securities

at

an

acceptable

price

may

be

difficult

and

may

involve

substantial

delays

and

additional

costs.

Private

Investments

Issued

by

Special

Purpose

Acquisition

Companies

Special purpose

acquisition

companies

(SPACs)

are

shell

companies

that

have

no

operations

but

are

formed

to

raise

capital

with

the

intention

of

merging

with

or

acquiring

a

company

with

the

proceeds

of

the

SPAC’s

initial

public

offering

(IPO).

The

fund

may

enter

into

a

contingent

commitment

with

a

SPAC

to

purchase

private

Investments

in

Securities

Value

(000s)

Valuation

Technique(s)+

Significant

Unobservable

Input(s)

Value

or

Range

of

Input(s)

Weighted

Average

of

Input(s)*

Impact

to

Valuation

from

an

Increase

in

Input**

Estimated

liquidation

value

Discount

for

lack

of

collectability

100%

100%

Decrease

Options

pricing

model

Private

company

valuation

—#

—#

—#

Risk-free

rate

4%

4%

Increase

Volatility

73%

73%

Increase

T.

ROWE

PRICE

Health

Sciences

Fund

36

investments

in

public

equity

(PIPE)

if

and

when

the

SPAC

completes

its

merger

or

acquisition.

The

fund

maintains

liquid

assets

sufficient

to

settle

its

commitment

to

purchase

the

PIPE.

However,

if

the

commitment

expires,

then

no

shares

are

purchased.

Purchased

PIPE

shares

will

be

restricted

from

trading

until

the

registration

statement

for

the

shares

is

declared

effective.

Upon

registration,

the

shares

can

be

freely

sold;

however,

in

certain

circumstances,

the

issuer

may

have

the

right

to

temporarily

suspend

trading

of

the

shares

in

the

first

year

after

the

merger

or

acquisition.

The

securities

issued

by

a

SPAC

may

be

considered

illiquid,

more

difficult

to

value,

and/or

be

subject

to

restrictions

on

resale.

Other 

Purchases

and

sales

of

portfolio

securities

other

than

short-term securities

aggregated $4,082,827,000 and

$4,684,767,000,

respectively,

for

the

six

months ended

June

30,

2023.

NOTE

4

-

FEDERAL

INCOME

TAXES

Generally,

no

provision

for

federal

income

taxes

is

required

since

the

fund

intends

to

continue

to

qualify

as

a

regulated

investment

company

under

Subchapter

M

of

the

Internal

Revenue

Code

and

distribute

to

shareholders

all

of

its

taxable

income

and

gains.

Distributions

determined

in

accordance

with

federal

income

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

but

are

not

adjusted

for

temporary

differences.

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

the

date

of

this

report.

At

June

30,

2023,

the

cost

of

investments

(including

derivatives,

if

any)

for

federal

income

tax

purposes

was

$8,519,851,000.

Net

unrealized

gain

aggregated

$7,153,990,000

at

period-end,

of

which $7,893,216,000

related

to

appreciated

investments

and $739,226,000

related

to

depreciated

investments.

NOTE

5

-

FOREIGN  TAXES

The

fund

is

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

it

invests.

Additionally,

capital

gains

realized

upon

disposition

of

securities

issued

in

or

by

certain

foreign

countries

are

subject

to

capital

gains

tax

imposed

by

those

countries.

All

taxes

are

computed

in

accordance

with

the

applicable

foreign

tax

law,

and,

to

the

extent

permitted,

capital

losses

are

used

to

offset

capital

gains.

Taxes

attributable

to

T.

ROWE

PRICE

Health

Sciences

Fund

37

income

are

accrued

by

the

fund

as

a

reduction

of

income.

Current

and

deferred

tax

expense

attributable

to

capital

gains

is

reflected

as

a

component

of

realized

or

change

in

unrealized

gain/loss

on

securities

in

the

accompanying

financial

statements.

To

the

extent

that

the

fund

has

country

specific

capital

loss

carryforwards,

such

carryforwards

are

applied

against

net

unrealized

gains

when

determining

the

deferred

tax

liability.

Any

deferred

tax

liability

incurred

by

the

fund

is

included

in

either

Other

liabilities

or

Deferred

tax

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

NOTE

6

-

RELATED

PARTY

TRANSACTIONS

The

fund

is

managed

by

T.

Rowe

Price

Associates,

Inc.

(Price

Associates),

a

wholly

owned

subsidiary

of

T.

Rowe

Price

Group,

Inc.

(Price

Group). The

investment

management

agreement

between

the

fund

and

Price

Associates

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

a

group

fee.

The

group

fee

rate

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

0.260%

for

assets

in

excess

of

$845

billion.

The

fund’s

group

fee

is

determined

by

applying

the

group

fee

rate

to

the

fund’s

average

daily

net

assets.

At June

30,

2023,

the

effective

annual

group

fee

rate

was

0.29%. Effective

May

1,

2021,

Price

Associates

has

contractually

agreed,

at

least

through

April

30,

2024,

to

waive

a

portion

of

its

management

fee

so

that

an

individual

fund

fee

of 0.2975%

is

applied

to

the

fund’s

average

daily

net

assets

that

are

equal

to

or

greater

than $25 billion.

Thereafter,

this

agreement

will

automatically

renew

for

one-year

terms

unless

terminated

by

the

fund’s

Board.

Any

fees

waived

under

this

agreement

are

not

subject

to

reimbursement

to

Price

Associates

by

the

fund. No

management

fees

were

waived

under

this

arrangement

for

the

six

months ended

June

30,

2023. 

The

I

Class

is

subject

to

an

operating

expense

limitation

(I

Class

Limit)

pursuant

to

which

Price

Associates

is

contractually

required

to

pay

all

operating

expenses

of

the

I

Class,

excluding

management

fees;

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage; non-recurring,

extraordinary expenses; and

acquired

fund

fees

and

expenses, to

the

extent

such

operating

expenses,

on

an

annualized

basis,

exceed

the

I

Class

Limit. This

agreement

will

continue

through

the

expense

limitation

date

indicated

in

the

table

below,

and

may

be

renewed,

revised,

or

revoked

only

with

approval

of

the

fund’s

Board.

The

I

Class

is

required

to

repay

Price

Associates

for

expenses

previously

paid

to

the

extent

the

class’s

net

assets

grow

or

expenses

decline

sufficiently

to

allow

repayment

without

causing

the

class’s

operating

expenses

(after

T.

ROWE

PRICE

Health

Sciences

Fund

38

the

repayment

is

taken

into

account)

to

exceed

the

lesser

of:

(1)

the

I

Class

Limit

in

place

at

the

time

such

amounts

were

paid;

or

(2)

the

current

I

Class

Limit.

However,

no

repayment

will

be

made

more

than

three

years

after

the

date

of

a

payment

or

waiver.

In

addition,

the

fund

has

entered

into

service

agreements

with

Price

Associates

and

two

wholly

owned

subsidiaries

of

Price

Associates,

each

an

affiliate

of

the

fund

(collectively,

Price).

Price

Associates

provides

certain

accounting

and

administrative

services

to

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

Investor

Class.

For

the

six

months

ended

June

30,

2023,

expenses

incurred

pursuant

to

these

service

agreements

were

$60,000

for

Price

Associates;

$2,871,000

for

T.

Rowe

Price

Services,

Inc.;

and

$240,000

for

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

All

amounts

due

to

and

due

from

Price,

exclusive

of

investment

management

fees

payable,

are

presented

net

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Additionally,

the

fund

is

one

of

several

mutual

funds

in

which

certain

college

savings

plans

managed

by

Price

Associates invests.

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.

Price

has

agreed

to waive/reimburse

shareholder

servicing

costs in

excess

of

0.05%

of

the

fund’s

average

daily

value

of

its

shares

owned

by

the

college

savings

plan.

Any

amounts

waived/paid

by

Price

under

this

voluntary

agreement

are

not

subject

to

repayment

by

the

fund.

Price

may

amend

or

terminate

this

voluntary

arrangement

at

any

time

without

prior

notice.

For

the

six

months ended

June

30,

2023,

the

fund

was

charged $40,000 for

shareholder

servicing

costs

related

to

the

college

savings

plans, of

which

$35,000

was

for

services

provided

by

Price.

All

amounts

due

to

and

due

from

Price,

exclusive

of

investment

management

fees

payable,

are

presented

net

on

the

accompanying

Statement

of

Assets

and

Liabilities. At

June

30,

2023,

no

shares

of

the

Investor

Class

were

held

by

college

savings

plans

and

approximately

1%

of

the

outstanding

shares

of

the

I

Class

were

held

by

college

savings

plans.

I

Class

Expense

limitation/I

Class

Limit

0.05%

Expense

limitation

date

04/30/24

(Waived)/repaid

during

the

period

($000s)

$—

T.

ROWE

PRICE

Health

Sciences

Fund

39

The fund

may

invest

its

cash

reserves

in

certain

open-end

management

investment

companies

managed

by

Price

Associates

and

considered

affiliates

of

the

fund:

the

T.

Rowe

Price

Government

Reserve

Fund

or

the

T.

Rowe

Price

Treasury

Reserve

Fund,

organized

as

money

market

funds

(together,

the

Price

Reserve

Funds).

The

Price

Reserve

Funds

are

offered

as

short-term

investment

options

to

mutual

funds,

trusts,

and

other

accounts

managed

by

Price

Associates

or

its

affiliates

and

are

not

available

for

direct

purchase

by

members

of

the

public.

Cash

collateral

from

securities

lending,

if

any,

is

invested

in

the

T.

Rowe

Price

Government

Reserve Fund. The

Price

Reserve

Funds

pay

no

investment

management

fees.

As

of

June

30,

2023,

T.

Rowe

Price

Group,

Inc.,

or

its

wholly

owned

subsidiaries,

owned

138,637

shares

of

the

I

Class,

representing

less

than

1%

of

the

I

Class's

net

assets. 

The

fund may

participate

in

securities

purchase

and

sale

transactions

with

other

funds

or

accounts

advised

by

Price

Associates

(cross

trades),

in

accordance

with

procedures

adopted

by the

fund’s

Board

and

Securities

and

Exchange

Commission

rules,

which

require,

among

other

things,

that

such

purchase

and

sale

cross

trades

be

effected

at

the

independent

current

market

price

of

the

security.

During

the

six

months

ended

June

30,

2023,

the

fund

had

no

purchases

or

sales

cross

trades

with

other

funds

or

accounts

advised

by

Price

Associates.

Price

Associates

has

voluntarily

agreed

to

reimburse

the

fund

from

its

own

resources

on

a

monthly

basis

for

the

cost

of

investment

research

embedded

in

the

cost

of

the

fund’s

securities

trades.

This

agreement

may

be

rescinded

at

any

time.

For

the

six

months ended

June

30,

2023,

this

reimbursement

amounted

to

$355,000,

which

is

included

in

Net

realized

gain

(loss)

on

Securities

in

the

Statement

of

Operations.

NOTE

7

-

OTHER

MATTERS

Unpredictable

events

such

as

environmental

or

natural

disasters,

war,

terrorism,

pandemics,

outbreaks

of

infectious

diseases,

and

similar

public

health

threats

may

significantly

affect

the

economy

and

the

markets

and

issuers

in

which

the fund

invests.

Certain

events

may

cause

instability

across

global

markets,

including

reduced

liquidity

and

disruptions

in

trading

markets,

while

some

events

may

affect

certain

geographic

regions,

countries,

sectors,

and

industries

more

significantly

than

others,

and

exacerbate

other

pre-existing

political,

social,

and

economic

risks.

Since

2020,

a

novel

strain

of

coronavirus

(COVID-19)

has

resulted

in

disruptions

to

global

business

activity

and

caused

significant

volatility

and

declines

in

global

financial

markets.

T.

ROWE

PRICE

Health

Sciences

Fund

40

In

February

2022,

Russian

forces

entered

Ukraine

and

commenced

an

armed

conflict

leading

to

economic

sanctions

being

imposed

on

Russia

and

certain

of

its

citizens,

creating

impacts

on

Russian-related

stocks

and

debt

and

greater

volatility

in

global

markets.

In

March

2023,

the

collapse

of

some

US

regional

and

global

banks

as

well

as

overall

concerns

around

the

soundness

and

stability

of

the

global

banking

sector

has

sparked

concerns

of

a

broader

financial

crisis

impacting

the

overall

global

banking

sector.

In

certain

cases,

government

agencies

have

assumed

control

or

otherwise

intervened

in

the

operations

of

certain

banks

due

to

liquidity

and

solvency

concerns.

The

extent

of

impact

of

these

events

on

the

US

and

global

markets

is

highly

uncertain.

These

are

recent

examples

of

global

events

which

may

have

a

negative

impact

on

the

values

of

certain

portfolio

holdings

or

the

fund’s

overall

performance.

Management

is

actively

monitoring

the

risks

and

financial

impacts

arising

from

these

events.

T.

ROWE

PRICE

Health

Sciences

Fund

41

INFORMATION

ON

PROXY

VOTING

POLICIES,

PROCEDURES,

AND

RECORDS

A

description

of

the

policies

and

procedures

used

by

T.

Rowe

Price

funds

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

is

available

in

each

fund’s

Statement

of

Additional

Information.

You

may

request

this

document

by

calling

1-800-225-5132

or

by

accessing

the

SEC’s

website,

sec.gov.

The

description

of

our

proxy

voting

policies

and

procedures

is

also

available

on

our

corporate

website.

To

access

it,

please

visit

the

following

Web

page:

https://www.troweprice.com/corporate/us/en/utility/policies.html

Scroll

down

to

the

section

near

the

bottom

of

the

page

that

says,

“Proxy

Voting

Guidelines.”

Click

on

the

links

in

the

shaded

box.

Each

fund’s

most

recent

annual

proxy

voting

record

is

available

on

our

website

and

through

the

SEC’s

website.

To

access

it

through

T.

Rowe

Price,

visit

the

website

location

shown

above,

and

scroll

down

to

the

section

near

the

bottom

of

the

page

that

says,

“Proxy

Voting

Records.”

Click

on

the

Proxy

Voting

Records

link

in

the

shaded

box.

RESULTS

OF

PROXY

VOTING

A

Special

Meeting

of

Shareholders

was

held

on

July

24,

2023

for

shareholders

of

record

on

April

7,

2023,

to

elect

the

following

director-nominees

to

serve

on

the

Board

of

all

Price

Funds.

The

newly

elected

Directors

took

office

effective

July

24,

2023.

The

results

of

the

voting

were

as

follows:

Teresa

Bryce

Bazemore,

Bruce

W.

Duncan,

Robert

J.

Gerrard,

Jr.,

Paul

F.

McBride

and

David

Oestreicher

continue

to

serve

as

Directors

on

the

Board

of

all

Price

Funds.

HOW

TO

OBTAIN

QUARTERLY

PORTFOLIO

HOLDINGS

The

fund

files

a

complete

schedule

of

portfolio

holdings

with

the

Securities

and

Exchange

Commission

(SEC)

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

fund’s

reports

on

Form

N-PORT

are

available

electronically

on

the

SEC’s

website

(sec.gov).

In

addition,

most

T.

Rowe

Price

funds

disclose

their

first

and

third

fiscal

quarter-end

holdings

on

troweprice.com

.

Votes

For

Votes

Withheld

Melody

Bianchetto

102,692,705

2,211,266

Mark

J.

Parrell

102,794,019

2,105,247

Kellye

L.

Walker

102,178,484

2,748,720

Eric

L.

Veiel

102,925,733

2,013,746

T.

ROWE

PRICE

Health

Sciences

Fund

42

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENT

Each

year,

the

fund’s

Board

of

Directors

(Board)

considers

the

continuation

of

the

investment

management

agreement

(Advisory

Contract)

between

the

fund

and

its

investment

adviser,

T.

Rowe

Price

Associates,

Inc.

(Adviser).

In

that

regard,

at

a

meeting

held

on

March

6–7,

2023

(Meeting),

the

Board,

including

all

of

the

fund’s

independent

directors,

approved

the

continuation

of

the

fund’s

Advisory

Contract.

At

the

Meeting,

the

Board

considered

the

factors

and

reached

the

conclusions

described

below

relating

to

the

selection

of

the

Adviser

and

the

approval

of

the

Advisory

Contract.

The

independent

directors

were

assisted

in

their

evaluation

of

the

Advisory

Contract

by

independent

legal

counsel

from

whom

they

received

separate

legal

advice

and

with

whom

they

met

separately.

In

providing

information

to

the

Board,

the

Adviser

was

guided

by

a

detailed

set

of

requests

for

information

submitted

by

independent

legal

counsel

on

behalf

of

the

independent

directors.

In

considering

and

approving

the

continuation

of

the

Advisory

Contract,

the

Board

considered

the

information

it

believed

was

relevant,

including,

but

not

limited

to,

the

information

discussed

below.

The

Board

considered

not

only

the

specific

information

presented

in

connection

with

the

Meeting

but

also

the

knowledge

gained

over

time

through

interaction

with

the

Adviser

about

various

topics.

The

Board

meets

regularly

and,

at

each

of

its

meetings,

covers

an

extensive

agenda

of

topics

and

materials

and

considers

factors

that

are

relevant

to

its

annual

consideration

of

the

renewal

of

the

T.

Rowe

Price

funds’

advisory

contracts,

including

performance

and

the

services

and

support

provided

to

the

funds

and

their

shareholders.

Services

Provided

by

the

Adviser

The

Board

considered

the

nature,

quality,

and

extent

of

the

services

provided

to

the

fund

by

the

Adviser.

These

services

included,

but

were

not

limited

to,

directing

the

fund’s

investments

in

accordance

with

its

investment

program

and

the

overall

management

of

the

fund’s

portfolio,

as

well

as

a

variety

of

related

activities

such

as

financial,

investment

operations,

and

administrative

services;

compliance;

maintaining

the

fund’s

records

and

registrations;

and

shareholder

communications.

The

Board

also

reviewed

the

background

and

experience

of

the

Adviser’s

senior

management

team

and

investment

personnel

involved

in

the

management

of

the

fund,

as

well

as

the

Adviser’s

compliance

record.

The

Board

concluded

that

the

information

it

considered

with

respect

to

the

nature,

quality,

and

extent

of

the

services

provided

by

the

Adviser,

as

well

as

the

other

factors

considered

at

the

Meeting,

supported

the

Board’s

approval

of

the

continuation

of

the

Advisory

Contract.

Investment

Performance

of

the

Fund

The

Board

took

into

account

discussions

with

the

Adviser

and

detailed

reports

that

it

regularly

receives

throughout

the

year

on

relative

and

absolute

performance

for

the

T.

Rowe

Price

funds.

In

connection

with

the

Meeting,

the

Board

reviewed

information

provided

by

the

Adviser

that

compared

the

fund’s

total

returns,

as

well

as

a

wide

variety

of

other

previously

agreed-upon

performance

measures

and

market

data,

against

relevant

benchmark

indexes

and

peer

groups

of

funds

with

similar

investment

programs

for

T.

ROWE

PRICE

Health

Sciences

Fund

43

various

periods

through

December

31,

2022. Additionally,

the

Board

reviewed

the

fund’s

relative

performance

information

as

of

September

30,

2022,

which

ranked

the

returns

of

the

fund’s

Investor

Class

for

various

periods

against

a

universe

of

funds

with

similar

investment

programs

selected

by

Broadridge,

an

independent

provider

of

mutual

fund

data.

In

the

course

of

its

deliberations,

the

Board

considered

performance

information

provided

throughout

the

year

and

in

connection

with

the

Advisory

Contract

review

at

the

Meeting,

as

well

as

information

provided

during

investment

review

meetings

conducted

with

portfolio

managers

and

senior

investment

personnel

during

the

course

of

the

year

regarding

the

fund’s

performance.

The

Board

also

considered

relevant

factors,

such

as

overall

market

conditions

and

trends

that

could

adversely

impact

the

fund’s

performance,

length

of

the

fund’s

performance

track

record,

and

how

closely

the

fund’s

strategies

align

with

its

benchmarks

and

peer

groups.

The

Board

concluded

that

the

information

it

considered

with

respect

to

the

fund’s

performance,

as

well

as

the

other

factors

considered

at

the

Meeting,

supported

the

Board’s

approval

of

the

continuation

of

the

Advisory

Contract.

Costs,

Benefits,

Profits,

and

Economies

of

Scale

The

Board

reviewed

detailed

information

regarding

the

revenues

received

by

the

Adviser

under

the

Advisory

Contract

and

other

direct

and

indirect

benefits

that

the

Adviser

(and

its

affiliates)

may

have

realized

from

its

relationship

with

the

fund.

In

considering

soft-

dollar

arrangements

pursuant

to

which

research

may

be

received

from

broker-dealers

that

execute

the

fund’s

portfolio

transactions,

the

Board

noted

that

the

Adviser

bears

the

cost

of

research

services

for

all

client

accounts

that

it

advises,

including

the

T.

Rowe

Price

funds.

The

Board

received

information

on

the

estimated

costs

incurred

and

profits

realized

by

the

Adviser

from

managing

the

T.

Rowe

Price

funds.

The

Board

also

reviewed

estimates

of

the

profits

realized

from

managing

the

fund

in

particular,

and

the

Board

concluded

that

the

Adviser’s

profits

were

reasonable

in

light

of

the

services

provided

to

the

fund.

The

Board

also

considered

whether

the

fund

benefits

under

the

fee

levels

set

forth

in

the

Advisory

Contract

or

otherwise

from

any

economies

of

scale

realized

by

the

Adviser.

Under

the

Advisory

Contract,

the

fund

pays

a

fee

to

the

Adviser

for

investment

management

services

composed

of

two

components—a

group

fee

rate

based

on

the

combined

average

net

assets

of

most

of

the

T.

Rowe

Price

funds

(including

the

fund)

that

declines

at

certain

asset

levels

and

an

individual

fund

fee

rate

based

on

the

fund’s

average

daily

net

assets—and

the

fund

pays

its

own

expenses

of

operations.

The

group

fee

rate

decreases

as

total

T.

Rowe

Price

fund

assets

grow,

which

reduces

the

management

fee

rate

for

any

fund

that

has

a

group

fee

component

to

its

management

fee,

and

reflects

that

certain

resources

utilized

to

operate

the

fund

are

shared

with

other

T.

Rowe

Price

funds

thus

allowing

shareholders

of

those

funds

to

share

potential

economies

of

scale.

The

fund’s

shareholders

also

benefit

from

potential

economies

of

scale

through

a

decline

in

certain

operating

expenses

as

the

fund

grows

in

size.

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENT

(continued)

T.

ROWE

PRICE

Health

Sciences

Fund

44

In

addition,

the

Board

noted

that

the

fund

potentially

shares

in

indirect

economies

of

scale

through

the

Adviser’s

ongoing

investments

in

its

business

in

support

of

the

T.

Rowe

Price

funds,

including

investments

in

trading

systems,

technology,

and

regulatory

support

enhancements,

and

the

ability

to

possibly

negotiate

lower

fee

arrangements

with

third-

party

service

providers.

The

Board

concluded

that

the

advisory

fee

structure

for

the

fund

provides

for

a

reasonable

sharing

of

benefits

from

any

economies

of

scale

with

the

fund’s

investors.

Fees

and

Expenses

The

Board

was

provided

with

information

regarding

industry

trends

in

management

fees

and

expenses.

Among

other

things,

the

Board

reviewed

data

for

peer

groups

that

were

compiled

by

Broadridge,

which

compared:

(i)

contractual

management

fees,

actual

management

fees,

nonmanagement

expenses,

and

total

expenses

of

the

Investor

Class

of

the

fund

with

a

group

of

competitor

funds

selected

by

Broadridge

(Expense

Group)

and

(ii)

actual

management

fees,

nonmanagement

expenses,

and

total

expenses

of

the

Investor

Class

of

the

fund

with

a

broader

set

of

funds

within

the

Lipper

investment

classification

(Expense

Universe).

The

Board

considered

the

fund’s

contractual

management

fee

rate,

actual

management

fee

rate

(which

reflects

the

management

fees

actually

received

from

the

fund

by

the

Adviser

after

any

applicable

waivers,

reductions,

or

reimbursements),

operating

expenses,

and

total

expenses

(which

reflect

the

net

total

expense

ratio

of

the

fund

after

any

waivers,

reductions,

or

reimbursements)

in

comparison

with

the

information

for

the

Broadridge

peer

groups.

Broadridge

generally

constructed

the

peer

groups

by

seeking

the

most

comparable

funds

based

on

similar

investment

classifications

and

objectives,

expense

structure,

asset

size,

and

operating

components

and

attributes

and

ranked

funds

into

quintiles,

with

the

first

quintile

representing

the

funds

with

the

lowest

relative

expenses

and

the

fifth

quintile

representing

the

funds

with

the

highest

relative

expenses.

The

information

provided

to

the

Board

indicated

that

the

fund’s

contractual

management

fee

ranked

in

the

third

quintile

(Expense

Group);

the

fund’s

actual

management

fee

rate

ranked

in

the

third

quintile

(Expense

Group

and

Expense

Universe);

and

the

fund’s

total

expenses

ranked

in

the

second

quintile

(Expense

Group

and

Expense

Universe).

The

Board

also

reviewed

the

fee

schedules

for

other

investment

portfolios

with

similar

mandates

that

are

advised

or

subadvised

by

the

Adviser

and

its

affiliates,

including

separately

managed

accounts

for

institutional

and

individual

investors;

subadvised

funds;

and

other

sponsored

investment

portfolios,

including

collective

investment

trusts

and

pooled

vehicles

organized

and

offered

to

investors

outside

the

United

States.

Management

provided

the

Board

with

information

about

the

Adviser’s

responsibilities

and

services

provided

to

subadvisory

and

other

institutional

account

clients,

including

information

about

how

the

requirements

and

economics

of

the

institutional

business

are

fundamentally

different

from

those

of

the

proprietary

mutual

fund

business.

The

Board

considered

information

showing

that

the

Adviser’s

mutual

fund

business

is

generally

more

complex

from

a

business

and

compliance

perspective

than

its

institutional

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENT

(continued)

T.

ROWE

PRICE

Health

Sciences

Fund

45

account

business

and

considered

various

relevant

factors,

such

as

the

broader

scope

of

operations

and

oversight,

more

extensive

shareholder

communication

infrastructure,

greater

asset

flows,

heightened

business

risks,

and

differences

in

applicable

laws

and

regulations

associated

with

the

Adviser’s

proprietary

mutual

fund

business.

In

assessing

the

reasonableness

of

the

fund’s

management

fee

rate,

the

Board

considered

the

differences

in

the

nature

of

the

services

required

for

the

Adviser

to

manage

its

mutual

fund

business

versus

managing

a

discrete

pool

of

assets

as

a

subadviser

to

another

institution’s

mutual

fund

or

for

an

institutional

account

and

that

the

Adviser

generally

performs

significant

additional

services

and

assumes

greater

risk

in

managing

the

fund

and

other

T.

Rowe

Price

funds

than

it

does

for

institutional

account

clients,

including

subadvised

funds.

On

the

basis

of

the

information

provided

and

the

factors

considered,

the

Board

concluded

that

the

fees

paid

by

the

fund

under

the

Advisory

Contract

are

reasonable.

Approval

of

the

Advisory

Contract

As

noted,

the

Board

approved

the

continuation

of

the

Advisory

Contract.

No

single

factor

was

considered

in

isolation

or

to

be

determinative

to

the

decision.

Rather,

the

Board

concluded,

in

light

of

a

weighting

and

balancing

of

all

factors

considered,

that

it

was

in

the

best

interests

of

the

fund

and

its

shareholders

for

the

Board

to

approve

the

continuation

of

the

Advisory

Contract

(including

the

fees

to

be

charged

for

services

thereunder).

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENT

(continued)

100

East

Pratt

Street

Baltimore,

MD

21202

T.

Rowe

Price

Investment

Services,

Inc.

Call

1-800-225-5132

to

request

a

prospectus

or

summary

prospectus;

each

includes

investment

objectives,

risks,

fees,

expenses,

and

other

information

that

you

should

read

and

consider

carefully

before

investing.

F114-051

8/23

Item 1. (b) Notice pursuant to Rule 30e-3.

Not applicable.

Item 2.  Code of Ethics.

A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.

Item 3.  Audit Committee Financial Expert.

Disclosure required in registrant’s annual Form N-CSR.

Item 4.  Principal Accountant Fees and Services.

Disclosure required in registrant’s annual Form N-CSR.

Item 5.  Audit Committee of Listed Registrants.

Not applicable.

Item 6.  Investments.

(a)  Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

(b)  Not applicable.

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10.  Submission of Matters to a Vote of Security Holders.

There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 11.  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 change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13.  Exhibits.

(a)(1)	The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR.
(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.
(3)	Written solicitation to repurchase securities issued by closed-end companies: not applicable.
(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/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	August 18, 2023

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/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	August 18, 2023

By	/s/ Alan S. Dupski
	Alan S. Dupski
	Principal Financial Officer
Date	August 18, 2023

EX-99.CERT

Item 13. (a)(2)

CERTIFICATIONS

I, David Oestreicher, certify that:

1. I have reviewed this report on Form N-CSR of T. Rowe Price Health Sciences Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 18, 2023	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer

CERTIFICATIONS

I, Alan S. Dupski, certify that:

1. I have reviewed this report on Form N-CSR of T. Rowe Price Health Sciences Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 18, 2023	/s/ Alan S. Dupski
	Alan S. Dupski
	Principal Financial Officer

EX-99.906CE

Item 13. (b)

CERTIFICATION UNDER SECTION 906 OF SARBANES-OXLEY ACT OF 2002

Name of Issuer: T. Rowe Price Health Sciences Fund

In connection with the Report on Form N-CSR for the above named Issuer, the undersigned hereby certifies, to the best of his knowledge, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.

Date:  August 18, 2023	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date:  August 18, 2023	/s/ Alan S. Dupski
	Alan S. Dupski
	Principal Financial Officer