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

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

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
Acadia Pharmaceuticals Inc. COM 004225108 462,676 20,481,442 SH   SOLE   20,481,442 0 0
Acceleron Pharma Inc. COM 00434H108 977 28,765 SH   SOLE   28,765 0 0
Achaogen Inc. COM 004449104 1,396 100,000 SH   SOLE   100,000 0 0
Achillion COM 00448Q201 3,318 438,337 SH   SOLE   438,337 0 0
Acorda Therapeutics, Inc. COM 00484M106 30,544 906,091 SH   SOLE   906,091 0 0
Aegerion Pharmaceuticals COM 00767E102 13,283 413,922 SH   SOLE   413,922 0 0
Aerie Pharmaceuticals COM 00771V108 7,415 299,356 SH   SOLE   299,356 0 0
Agios Pharmaceuticals COM 00847X104 9,159 199,893 SH   SOLE   199,893 0 0
Alder Biopharmaceuticals, Inc. COM 014339105 3,078 153,350 SH   SOLE   153,350 0 0
Alnylam Pharmaceuticals, Inc. COM 02043Q107 733 11,600 SH   SOLE   11,600 0 0
Ambit Biosciences Corp. COM 02318X100 5,168 747,954 SH   SOLE   747,954 0 0
Amicus Therapeutics COM 03152W109 1,609 481,697 SH   SOLE   481,697 0 0
Anacor Pharmaceuticals COM 032420101 57,588 3,248,043 SH   SOLE   3,248,043 0 0
Aquinox Pharmaceuticals, Inc. COM 03842B101 11,355 1,211,851 SH   SOLE   1,211,851 0 0
Array Biopharma Inc. COM 04269X105 6,538 1,433,797 SH   SOLE   1,433,797 0 0
Arrowhead Research Corp. COM 042797209 20,475 1,430,802 SH   SOLE   1,430,802 0 0
Avanir Pharmaceuticals COM CLASS A 05348P401 104,670 18,558,487 SH   SOLE   18,558,487 0 0
Biocryst Pharmaceuticals Inc. COM 09058V103 138,859 10,890,872 SH   SOLE   10,890,872 0 0
BioDelivery Sciences Intl. Inc. COM 09060J106 5,082 421,005 SH   SOLE   421,005 0 0
Biomarin Pharmaceuticals COM 09061G101 118,711 1,908,230 SH   SOLE   1,908,230 0 0
Biota Pharmaceuticals COM 090694100 3,155 1,106,910 SH   SOLE   1,106,910 0 0
Bluebird Bio Inc. COM 09609G100 7,647 198,260 SH   SOLE   198,260 0 0
Catalyst Pharmaceuticals, Inc. COM 14888U101 5,624 2,223,053 SH   SOLE   2,223,053 0 0
Celsus Therapeutics SPONSORED ADR NE 15119A202 3,706 673,887 SH   SOLE   673,887 0 0
Cerus COM 157085101 42,523 10,246,591 SH   SOLE   10,246,591 0 0
Chemocentryx Inc. COM 16383L106 293 50,000 SH   SOLE   50,000 0 0
Clovis Oncology COM 189464100 32,847 793,221 SH   SOLE   793,221 0 0
Concert Pharmaceuticals, Inc. COM 206022105 4,028 398,800 SH   SOLE   398,800 0 0
Cyclacel Pharmaceuticals Pfd. Conv. Ex 6% PFD CONV EX 6% 23254L207 108 13,253 SH   SOLE   13,253 0 0
Cytrx Corp. COM 232828509 5,643 1,350,000 SH   SOLE   1,350,000 0 0
Derma Sciences COM 249827502 40,889 3,537,137 SH   SOLE   3,537,137 0 0
Discovery Laboratories Inc. COM 254668403 6,501 3,652,117 SH   SOLE   3,652,117 0 0
Dyax Corp. COM 26746E103 54,540 5,681,237 SH   SOLE   5,681,237 0 0
Enanta Pharmaceuticals COM 29251M106 3,246 75,357 SH   SOLE   75,357 0 0
Epizyme Inc. COM 29428V104 6,660 214,012 SH   SOLE   214,012 0 0
Five Prime Therapeutics Inc. COM 33830X104 308 19,823 SH   SOLE   19,823 0 0
Foundation Medicine Inc. COM 350465100 2,107 78,162 SH   SOLE   78,162 0 0
Galectin Therapeutics Inc. COM 363225202 4,143 300,000 SH   SOLE   300,000 0 0
Genomic Health Inc. COM 37244C101 374,144 13,654,902 SH   SOLE   13,654,902 0 0
Geron Corp. COM 374163103 1,292 402,629 SH   SOLE   402,629 0 0
Gilead Sciences Inc. COM 375558103 21,234 256,108 SH   SOLE   256,108 0 0
Halozyme Therapeutics Inc. COM 40637H109 27,428 2,776,143 SH   SOLE   2,776,143 0 0
Heron Therapeutics, Inc. COM 427746102 32,128 2,607,784 SH   SOLE   2,607,784 0 0
Idera Pharmaceuticals Inc. COM 45168K306 4,678 1,613,076 SH   SOLE   1,613,076 0 0
Ignyta COM 451731103 5,190 571,000 SH   SOLE   571,000 0 0
Incyte Corp. COM 45337C102 837,883 14,845,559 SH   SOLE   14,845,559 0 0
Infinity Pharmaceuticals Inc. COM 45665G303 7,950 624,050 SH   SOLE   624,050 0 0
Insmed Inc. COM 457669307 6,075 304,050 SH   SOLE   304,050 0 0
Intermune Inc. COM 45884X103 208,515 4,722,869 SH   SOLE   4,722,869 0 0
Ironwood Pharmaceuticals COM 46333X108 6,840 446,160 SH   SOLE   446,160 0 0
Isis Pharmaceuticals, Inc. COM 464330109 3,318 96,303 SH   SOLE   96,303 0 0
Karyopharm Therapeutics COM 48576U106 4,380 94,095 SH   SOLE   94,095 0 0
Kythera Biopharmaceuticals COM 501570105 11,943 311,255 SH   SOLE   311,255 0 0
La Jolla Pharmaceuticals, Inc. COM 503459604 2,035 221,631 SH   SOLE   221,631 0 0
Ligand Pharmaceuticals COM 53220K504 4,572 73,400 SH   SOLE   73,400 0 0
Lipocine Inc. COM 53630X104 3,050 500,000 SH   SOLE   500,000 0 0
Macrogenics, Inc. COM 556099109 6,777 311,891 SH   SOLE   311,891 0 0
Mast Therapeutics, Inc. COM 057631410 1,887 3,000,000 SH   SOLE   3,000,000 0 0
Mediwound Ltd. COM M68830104 2,561 225,000 SH   SOLE   225,000 0 0
Mirati Therapeutics Inc. COM 60468T105 47,601 2,380,074 SH   SOLE   2,380,074 0 0
Neurocrine Biosciences, Inc. COM 64125C109 8,230 554,590 SH   SOLE   554,590 0 0
Novavax Inc. COM 670002104 5,652 1,223,362 SH   SOLE   1,223,362 0 0
Omeros Corp. COM 682143102 13,116 753,804 SH   SOLE   753,804 0 0
Ophthotech Corp. COM 683745103 1,556 36,776 SH   SOLE   36,776 0 0
Orasure Technologies Inc. SHS 68554V108 2,020 234,664 SH   SOLE   234,664 0 0
Osiris Therapeutics Inc. COM 68827R108 7,976 510,606 SH   SOLE   510,606 0 0
Pharmacyclics Inc. COM 716933106 860,458 9,591,546 SH   SOLE   9,591,546 0 0
Progenics Pharmaceuticals, Inc. COM 743187106 19,179 4,449,797 SH   SOLE   4,449,797 0 0
QLT Inc. COM 746927102 9,492 1,535,863 SH   SOLE   1,535,863 0 0
Questcor Pharmaceuticals, Inc. COM 74835Y101 46,245 500,000 SH   SOLE   500,000 0 0
Receptos Inc. COM 756207106 1,018 23,900 SH   SOLE   23,900 0 0
Regado COM 75874Q107 2,716 400,000 SH   SOLE   400,000 0 0
Repros Therapeutics COM 76028H209 48,071 2,778,654 SH   SOLE   2,778,654 0 0
Rigel Pharmaceuticals COM 766559603 1,750 481,972 SH   SOLE   481,972 0 0
Salix Pharmaceuticals COM 795435106 1,063 8,621 SH   SOLE   8,621 0 0
Salix Pharmaceuticals Ltd Put 110 July 14 COM 795435956 13,063 105,900 SH   SOLE   105,900 0 0
Salix Pharmaceuticals Ltd Put 115 July 14 COM 795435956 2,368 19,200 SH   SOLE   19,200 0 0
Sangamo Biosceiences, Inc. COM 800677106 7,983 522,764 SH   SOLE   522,764 0 0
Seattle Genetics, Inc. COM 812578102 859,562 22,472,229 SH   SOLE   22,472,229 0 0
Stemline Therapeutics Inc. COM 85858C107 4,968 338,671 SH   SOLE   338,671 0 0
Synageva Biopharma Corp. COM 87159A103 1,117,213 10,660,432 SH   SOLE   10,660,432 0 0
Synergy Pharmaceuticals COM 871639308 7,156 1,758,271 SH   SOLE   1,758,271 0 0
Synta Pharmaceuticals COM 87162T206 2,045 500,000 SH   SOLE   500,000 0 0
Tekmire Pharmaceuticals Corp. COM 87911B209 6,323 484,156 SH   SOLE   484,156 0 0
Tesaro Inc. COM 881569107 971 31,218 SH   SOLE   31,218 0 0
TG Therapeutics COM 88322Q108 20,291 2,160,965 SH   SOLE   2,160,965 0 0
Threshold Pharma COM 885807206 7,232 1,826,358 SH   SOLE   1,826,358 0 0
Ultragenyx Pharmaceuticals COM 90400D108 4,489 100,000 SH   SOLE   100,000 0 0
Uniquere B.V. COM N90064101 417 30,672 SH   SOLE   30,672 0 0
Vanda Pharmaceuticals, Inc. COM 921659108 70,741 4,372,153 SH   SOLE   4,372,153 0 0
Versartis Inc. COM 92529L102 34,935 1,245,889 SH   SOLE   1,245,889 0 0
Xencor COM 98401F105 6,302 542,363 SH   SOLE   542,363 0 0
Xenoport COM 98411C100 19,485 4,034,112 SH   SOLE   4,034,112 0 0
Xoma Corp. COM 98419J107 105,873 23,065,972 SH   SOLE   23,065,972 0 0
Ziopharm Oncology Inc. COM 98973P101 986 244,619 SH   SOLE   244,619 0 0
Zogenix, Inc. COM 98978L105 4,724 2,350,400 SH   SOLE   2,350,400 0 0
Biomarin Pharmaceuticals Notes 1.875% 4/23/2017 CONV BONDS 09061GAD3 70,511 22,898,000 PRN   SOLE   0 0 0
Biomarin Pharmaceuticals Notes 0.75% 10/15/2018 CONV BONDS 09061GAE1 12,895 12,500,000 PRN   SOLE   0 0 0
Gilead 1.625% 5/1/16 CONV BONDS 375558AP8 78,358 21,500,000 PRN   SOLE   0 0 0
Incyte Corporation Notes 4.75% 10/1/2015 144A CONV BONDS 45337CAJ1 259,336 40,446,000 PRN   SOLE   0 0 0
Incyte Corporation Notes 0.375% 11/15/2018 144A CONV BONDS 45337CAK8 345,981 259,000,000 PRN   SOLE   0 0 0
Incyte Corporation Notes 1.25% 11/15/2020 144A CONV BONDS 45337CAL6 371,605 274,500,000 PRN   SOLE   0 0 0
Intermune Inc Notes 5% 3/1/15 CONV BONDS 45884XAD5 39,842 16,860,000 PRN   SOLE   0 0 0
Intermune Inc Notes 2.5% 12/15/17 CONV BONDS 45884XAF0 141,190 41,000,000 PRN   SOLE   0 0 0
Medivation 2.625% 4/1/17 CONV BONDS 58501NAA9 55,324 34,720,000 PRN   SOLE   0 0 0
Salix 2.75% 5/15/15 CONV BONDS 795435AC0 585,836 219,440,000 PRN   SOLE   0 0 0
Salix 1.5% 3/15/19 CONV BONDS 795435AE6 29,447 15,000,000 PRN   SOLE   0 0 0