MERRILL LYNCH
HEALTHCARE
FUND, INC.
FUND LOGO
Semi-Annual Report
October 31, 1994
This report is not authorized for use as an offer of sale
or a solicitation of an offer to buy shares of the Company
unless accompanied or preceded by the Company's
current prospectus. Past performance results shown in
this report should not be considered a representation
of future performance. Investment return and prin-
cipal value of shares will fluctuate so that shares,
when redeemed, may be worth more or less than their
original cost.
Merrill Lynch
Healthcare Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH HEALTHCARE FUND, INC.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
Edward H. Meyer, Director
Charles C. Reilly, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Senior Vice President
Philip L. Kirstein, Senior Vice President
Donald C. Burke, Vice President
Jordan C. Schreiber, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Chase Manhattan Bank, N.A.
Global Securities Services
4 Chase MetroTech Center, 18th Floor
Brooklyn, New York 11245
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
DEAR SHAREHOLDER
The quarter ended October 31, 1994
was an upbeat period for healthcare
investors. The three-month period
was highlighted by the defeat of the
Clinton Administration's proposal to
regulate the healthcare industry in
the United States. Although generic
drug pressures remain intense, prod-
uct price increases restrained, and
the long-term merits of distributor
ownership yet to be determined,
sales growth and profitability in the
October quarter for US pharmaceu-
tical companies have exceeded the
expectations of industry analysts.
It is apparent that aggressive cost-
cutting is paying off. The weakness of
the US dollar also contributed to the
<PAGE>
healthcare industry's relatively strong
performance. Almost one-half of the
US-based multinational pharmaceu-
tical industry's sales are generated in
overseas markets. During the quarter,
most of the income derived from
these operations came from countries
with stronger currencies. This
resulted in an earnings benefit when
foreign income was translated into
US dollars. Unexpectedly buoyant
operating results, and the continued
consolidation in all sectors of the
healthcare industry, underpinned a
rally in large-capitalization pharma-
ceutical companies. Pharmaceutical
stock valuations continued to be at a
discount to the Standard & Poor's
500. Moreover, strong cash flows and
secure dividends of pharmaceutical
stocks appealed to "value" as well as
to "growth stock" investors. After a two-
year decline, we believe the pharma-
ceutical industry group is under-owned
by institutional investors.
Outside of the United States, currency
exchange turmoil, and at least the
appearance of fast economic growth
in the United States, increased the
likelihood of interest rate hikes. The
weakened US dollar impacted the
European and Japanese pharmaceu-
tical companies' earnings and, com-
bined with generally weak equity
markets, led to underperformance of
these issues relative to their US
counterparts.
<PAGE>
As the October quarter progressed in
the United States, those pharmaceu-
tical companies that had been most
threatened by the Clinton Adminis-
tration's healthcare proposal were
stock price performance leaders as it
became increasingly certain that
healthcare reform would not be
passed in this Congressional session.
On the other hand, shares of the
healthcare service companies that
were perceived as beneficiaries under
a nationwide healthcare reform pro-
gram and were consequently accorded
higher valuations--such as health
maintenance organizations (HMOs),
hospitals, and long-term care com-
panies--slipped in performance as
the defeat of healthcare reform be-
came apparent.
Despite this shift of investor atten-
tion, it is clear that managed care
momentum is very much alive. HMO
membership growth continues to be
strong. Competition in all sectors of
the healthcare industry is vigorous
and has led to consolidation as a way
to increase efficiency. Share prices of
service companies likely to sustain
continuing strong earnings growth
were rewarded with commensurate
share price appreciation.
In the United States, only the biotech-
nology group underperformed. This
sector was plagued by an extraordi-
nary succession of product failures,
which is especially unusual as the
products were in late stages of clinical
study with commercialization in
sight. Generally, the underperfor-
mance of biotechnology stocks
paralleled the lesser performance
of smaller-capitalization healthcare
shares. This has been the pattern
for more than two years.
<PAGE>
Investment Strategy
Merrill Lynch Healthcare Fund,
Inc. participated in the healthcare
recovery during the October quarter.
Total returns for the Fund's Class A
and Class B Shares were +9.37% and
+8.64%, respectively. (Results do not
include sales charges and would be
lower if sales charges were included.
Complete performance information,
including average annual total returns,
can be found on pages 4, 5 and 6 of this
report to shareholders.) Throughout
the period, we added to the US
portion of the Fund's portfolio. We
also increased the number of large-
capitalization holdings, especially
pharmaceutical companies. We view
the investment outlook for healthcare
with optimism. We expect the consol-
idation in the healthcare industry to
continue. The stress on cost-effective
healthcare delivery is also likely to
continue unabated. Our investment
strategy emphasizes commitments in
sustainable superior growth com-
panies in both the product and the
service areas of the healthcare
sector.
For example, we have an invest-
ment position in Pfizer, Inc., a multi-
national drug company with an
impressively long list of new pharma-
ceutical compounds proceeding
through the regulatory process. The
company's recently commercialized
drugs should help to sustain a 12%--14%
long-term annual earnings growth
rate. The growth is based on unit
volume gains and is not dependent
on price increases. Another portfolio
holding, United Healthcare Corp., is a
well-managed HMO and managed-care
service company that is generating
internal earnings growth of over 20%
per year as HMO enrollment continues
to burgeon. Through ongoing acquisi-
tions, the company's projected earn-
ings growth is likely to be further
increased to 25%--30% annually, a range
that we believe may be expected to
be sustained over the next few years.
<PAGE>
Overseas, the pharmaceutical market
has emerged from widespread govern-
ment actions in the past two years
that impeded profitability. In the
major pharmaceutical markets,
government regulatory pressures have
abated with the exception of Italy,
where the general political structure
including the healthcare regulatory
agency is presently in a chaotic state.
Companies have cut costs signifi-
cantly. In addition, the pharmaceutical
industry has started to penetrate
emerging markets in eastern Europe,
China and India. Merrill Lynch
Healthcare Fund has positions in
such world-class companies as Astra
AB, a Swedish pharmaceutical com-
pany which is a major force in ulcer
and asthma therapy, and in Elekta
Instrument AB, another Swedish
company that is a world leader in
neurosurgery instrumentation.
During the October quarter, we initi-
ated a position in Ranbaxy Laborato-
ries Ltd., a leading Indian generic drug
manufacturer. Ranbaxy is allied in a
joint venture with Eli Lilly & Co. (also
a portfolio holding) to supply generic
drugs to the US market. The company
is one of the lowest cost producers
of generic drugs in the world, a favor-
able attribute in view of the world-
wide concern over healthcare costs.
In Conclusion
Although the worldwide healthcare
industry is continuing to go through
a period of major change, the most
onerous pressures appear to have
passed. From a period of deteriora-
tion over the past two years, we
believe that we have now entered a
period of business stabilization and
improvement. We thank you for your
investment in Merrill Lynch Health-
care Fund, Inc., and we look forward
to the improved outlook for healthcare
investments.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Jordan C. Schreiber)
Jordan C. Schreiber
Vice President and Portfolio Manager
November 16, 1994
PERFORMANCE DATA
About Fund
Performance
Since October 21, 1994, investors have been able to purchase
shares of the Fund through the Merrill Lynch Select Pricing SM
System, which offers four pricing alternatives:
* Class A Shares incur a maximum initial sales charge (front-
end load) of 5.25% and bear no ongoing distribution or account
maintenance fees. Class A Shares are available only to eligible
investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1%
each year thereafter to 0% after the fourth year. In addition,
Class B shares are subject to a distribution fee of 0.75% and an
account maintenance fee of 0.25%. These shares automatically
convert to Class D Shares after 8 years.
* Class C Shares are subject to a distribution fee of 0.75% and
an account maintenance fee of 0.25%. In addition, Class C
Shares are subject to a 1% contingent deferred sales charge if
redeemed within one year of purchase.
* Class D Shares incur a maximum initial sales charge
of 5.25% and an account maintenance fee of 0.25% (but no
distribution fee).
Performance data for the Fund's Class A and Class B Shares
are presented in the "Performance Summary" and "Average Annual
Total Return" tables on pages 4, 5 and 6. Data for all of the Fund's
shares, including Class C and Class D Shares, are presented in the
"Recent Performance Results" table.
<PAGE>
The "Recent Performance Results" table on pages 4 and 5 shows
investment results before the deduction of any sales charges for
Class A and Class B Shares for the 12-month and 3-month periods
ended October 31, 1994 and for Class C and Class D Shares
for the period since inception through October 31, 1994. All
data in this table assume imposition of the actual total expenses
incurred by each class of shares during the relevant period.
None of the past results shown should be considered a represen-
tation of future performance. Investment return and principal
value of shares will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost.
Average Annual
Total Return+++
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 9/30/94 + 2.74% - 2.65%
2/01/90++ through 9/30/94 + 7.67 + 6.44
Five Years Ended 9/30/94 + 7.35 + 6.20
Ten Years Ended 9/30/94 + 9.19 + 9.32
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
++On February 1, 1990, Merrill Lynch Asset Management became the sole
investment adviser.
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 9/30/94 + 1.81% - 1.96%
2/01/90++ through 9/30/94 + 6.57 + 6.57
Five Years Ended 9/30/94 + 6.26 + 6.26
Inception (10/21/88) through 9/30/94 + 7.37 + 7.37
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
++On February 1, 1990, Merrill Lynch Asset Management became the sole
investment adviser.
<PAGE>
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month
10/31/94 7/31/94++ 10/31/93 % Change % Change++
<S> <C> <C> <C> <C> <C>
Class A Shares* $3.62 $3.31 $3.87 +1.16%(1) +9.37%
Class B Shares* 3.27 3.01 3.56 +0.09(1) +8.64
Class C Shares* 3.27 3.27 -- -- 0.00
Class D Shares* 3.54 3.61 -- -- -1.94
Class A Shares--Total Return* +1.16(1) +9.37
Class B Shares--Total Return* +0.09(1) +8.64
Class C Shares--Total Return* -- 0.00
Class D Shares--Total Return* -- -1.94
<FN>
*Investment results shown do not reflect sales charges; results shown would be lower if
a sales charge was included.
++Investment results shown for Class C and Class D Shares are since inception (10/21/94).
(1)Percent change includes reinvestment of $0.266 per share capital gains distributions.
</TABLE>
<TABLE>
Performance
Summary--
Class A Shares+++
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed Paid* % Change**
<C> <C> <C> <C> <C> <C>
4/1/83--12/31/83 $ 9.15 $ 9.56 -- $0.120 + 5.85%
1984 9.56 8.83 $ 0.040 0.090 - 6.34
1985 8.83 10.65 -- 0.120 +22.16
1986 10.65 11.94 0.530 0.100 +17.86
1987 11.94 9.90 3.347 0.015 +10.24
1988 9.90 9.56 0.825 0.145 + 6.39
1989 9.56 9.09 1.422 0.068 +11.46
1990 9.09 7.29 0.832 0.489 - 6.19
1991 7.29 9.18 -- 1.320 +45.71
1992 9.18 4.03 4.123++ 1.028 + 6.92
1993 4.03 3.91 -- 0.013 - 2.63
1/1/94--10/31/94 3.91 3.62 0.266 -- + 0.13
------- ------
Total $11.385 Total $3.508
Cumulative total return as of 10/31/94: +165.88%**
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date, and do not include sales charge;
results would be lower if sales charge was included.
++Figure includes a $0.879 and $3.089 return of capital on 4/22/92 and 4/27/92,
respectively.
</TABLE>
<PAGE>
<TABLE>
Performance
Summary--
Class B Shares+++
<CAPTION>
Net Asset Value Capital Gains Dividends
Period Covered Beginning Ending Distributed Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88--12/31/88 $10.24 $9.55 $ 0.825 $0.089 + 2.22%
1989 9.55 9.07 1.422 0.006 +10.70
1990 9.07 7.19 0.832 0.455 - 7.42
1991 7.19 8.96 -- 1.291 +44.21
1992 8.96 3.72 4.123++ 1.028 + 5.46
1993 3.72 3.59 -- -- - 3.49
1/1/94--10/31/94 3.59 3.27 0.266 -- - 0.74
------ ------
Total $7.468 Total $2.869
Cumulative total return as of 10/31/94: +52.61%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date, and do not reflect deduction of
any sales charge; results would be lower if sales charge was deducted.
++Figure includes a $0.879 and $3.089 return of capital on 4/22/92 and 4/27/92,
respectively.
+++See Important Note on page 6.
</TABLE>
PERFORMANCE DATA (concluded)
[FN]
+++Important Note:
Prior to April 27, 1992, Merrill Lynch Healthcare Fund, Inc. was known as
Sci/Tech Holdings, Inc. and contained, in addition to a healthcare
portfolio, a portfolio of technology securities. The data on pages 4 and 5
include the performance of the technology portfolio which is no longer
part of the Fund. Set forth below performance data which, for the period
before April 27, 1992, includes only the performance of the healthcare
portfolio and a pro rata allocated portion of Sci/Tech Holdings, Inc.'s
cash reserves. On February 1, 1990, Merrill Lynch Asset Management became
the sole investment adviser.
<PAGE>
Average Annual
Total Return
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 9/30/94 + 2.74% - 2.65%
2/01/90++ through 9/30/94 +14.87 +13.55
[FN]
*Maximum sales charge is 5.25%.
**Assuming maximum sales charge.
++Due to the inability to completely isolate the performance of Sci/Tech
Holdings, Inc.'s technology portfolio from its healthcare portfolio,
computations are based upon management's estimates of the healthcare
portfolio.
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 9/30/94 +1.81% - 1.96%
2/01/90++ through 9/30/94 +14.29 +14.29
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
Recent
Performance
Results
12 Month 2/01/90 to 10/31/94++
% Change % Change
Class A Shares--Total Return +1.16%(1) +91.41%
Class B Shares--Total Return +0.09(1) +86.39
[FN]
++Due to the inablity to completely isolate the performance of Sci/Tech
Holdings, Inc.'s technology portfolio from its healthcare portfolio,
computations are based upon management's estimates of the healthcare
portfolio.
(1)Percent change includes reinvestment of $0.266 per share
capital gains distributions.
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
NORTH Value Percent of
AMERICA Industries Shares Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C>
United Biotechnology 150,000 ++BioCryst Pharmaceuticals, Inc. $ 975,000 $ 825,000 0.6%
States 50,000 ++Biogen, Inc. 2,437,500 2,450,000 1.8
24,600 ++Biomira Inc. 146,134 127,612 0.1
60,000 ++Chiron Corp. 4,368,284 4,035,000 3.0
200,000 ++Genelabs Technologies, Inc. 450,000 425,000 0.3
5,000 ++Genentech, Inc. 173,740 253,750 0.2
85,000 ++Matrix Pharmaceuticals Inc. 796,875 1,190,000 0.9
35,000 ++PerSeptive Biosystems, Inc. 558,438 385,000 0.3
------------ ------------ ------
9,905,971 9,691,362 7.2
Diagnostics 188,900 ++Aprogenex Inc. 1,685,073 1,770,937 1.3
460,000 ++Meris Laboratories, Inc. (b) 4,360,434 1,782,500 1.3
100,000 ++Quidel Corp. 489,880 287,500 0.2
100,000 ++Sangstat Medical Corp. 700,000 675,000 0.5
------------ ------------ ------
7,235,387 4,515,937 3.3
Health Care Cost 40,000 Columbia/HCA Healthcare Corporation 1,557,116 1,665,000 1.2
Containment 30,000 ++Health Management Systems, Inc. 489,843 832,500 0.6
30,000 ++Medaphis Corp. 410,500 1,140,000 0.9
24,400 ++MedQuist, Inc. 171,500 170,800 0.1
50,000 ++Pharmaceutical Marketing Services, Inc. 448,125 562,500 0.4
105,000 ++Physician Corporation of America 2,412,500 2,493,750 1.9
80,000 Pyxis Corporation 1,861,669 1,520,000 1.1
150,000 RightCHOICE Managed Care, Inc. 1,688,725 2,100,000 1.6
250,000 ++Systemed, Inc. 1,320,000 1,875,000 1.4
90,000 United Healthcare Corp. 4,699,249 4,747,500 3.6
------------ ------------ ------
15,059,227 17,107,050 12.8
<PAGE>
Medical Specialties 56,000 ++Argus Pharmaceuticals, Inc. 293,725 112,000 0.1
100,000 ++Cordis Corp. 4,445,311 5,762,500 4.3
580,000 ++EP Technologies, Inc. (b) 4,127,502 6,380,000 4.8
76,800 ++Fresenius USA Inc. 529,405 652,800 0.5
60,000 ++InControl, Inc. 660,000 675,000 0.5
100,000 Medtronic, Inc. 3,390,500 5,212,500 3.9
100,000 ++North American Vaccine Inc., NVX 1,087,479 1,100,000 0.8
219,467 Uromed Corp. 1,000,005 713,268 0.5
50,000 Ventritex, Inc. 1,045,000 1,287,500 1.0
------------ ------------ ------
16,578,927 21,895,568 16.4
Pharmaceutical-- 209,300 ++IVAX Corp. 5,847,883 4,002,863 3.0
Diversified 40,000 ++Teva Pharmaceuticals Industries,
Inc. (ADR)** 1,170,000 1,085,000 0.8
80,000 Warner-Lambert Co. 5,357,348 6,100,000 4.6
------------ ------------ ------
12,375,231 11,187,863 8.4
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
NORTH AMERICA Value Percent of
(concluded)Industries Shares Held Investments Cost (Note 1a) Net Assets
<S> <S> <C> <S> <C> <C>
United Pharmaceutical-- 80,000 Lilly (Eli) & Co. $ 4,478,475 $ 4,960,000 3.7%
States Prescription 20,000 Pfizer, Inc. 1,447,450 1,482,500 1.1
(concluded) 40,000 Rhone-Poulenc Rorer, Inc. 1,375,124 1,460,000 1.1
30,000 Schering-Plough 1,919,934 2,137,500 1.6
------------ ------------ ------
9,220,983 10,040,000 7.5
Investments in the United States 70,375,726 74,437,780 55.6
Total Investments in North America 70,375,726 74,437,780 55.6
PACIFIC
BASIN
Australia Biotechnology 1,101,000 Biota Holdings, Ltd. 2,191,863 2,041,804 1.5
Investments in Australia 2,191,863 2,041,804 1.5
India Pharmaceutical-- 150,000 Ranbaxy Laboratories Ltd. (GDS)* 2,987,300 3,057,000 2.3
Prescription
Investments in India 2,987,300 3,057,000 2.3
<PAGE>
Japan Pharmaceutical-- 41,000 Taisho Pharmaceutical Co., Ltd. 810,339 753,381 0.6
Diversified
Pharmaceutical-- 30,000 Kissei Pharmaceutical Co., Ltd. 1,219,297 1,201,610 0.9
Prescription
Investments in Japan 2,029,636 1,954,991 1.5
Total Investments in the Pacific Basin 7,208,799 7,053,795 5.3
WESTERN
EUROPE
France Pharmaceutical-- 20,000 Rhone-Poulenc SA (PIC) 545,342 492,917 0.4
Prescription
Investments in France 545,342 492,917 0.4
Nether- Pharmaceutical-- 68,000 AKZO N.V. 5,621,687 8,581,624 6.4
lands Prescription
Investments in the Netherlands 5,621,687 8,581,624 6.4
Sweden Medical Specialties 110,000 Elekta Instrument AB 'B' Free 2,166,067 2,416,440 1.8
Pharmaceutical-- 100,000 Astra AB "B" Free 2,130,121 2,669,484 2.0
Prescription 40,000 Pharmacia Biotech AB (Class B) 623,006 742,450 0.6
------------ ------------ ------
2,753,127 3,411,934 2.6
Investments in Sweden 4,919,194 5,828,374 4.4
United Biotechnology 186,664 ++British Biotech PLC 1,098,364 1,806,932 1.4
Kingdom 34,998 ++British Biotech PLC (Warrants) (a) 19,246 85,125 0.1
------------ ------------ ------
1,117,610 1,892,057 1.5
Investments in the United Kingdom 1,117,610 1,892,057 1.5
Total Investments in Western Europe 12,203,833 16,794,972 12.7
<PAGE>
<CAPTION>
SHORT-TERM Face
SECURITIES Amount
<S> <C> <S> <C> <C> <C>
Commercial Paper*** $5,069,000 Associates Corp. of North America, 4.72%
due 11/01/1994 5,069,000 5,069,000 3.8
4,000,000 Daimler-Benz AG, 5.00% due 11/09/1994 3,995,556 3,995,556 3.0
5,000,000 Matterhorn Capital Corp., 4.88%
due 11/18/1994 4,988,478 4,988,478 3.7
4,000,000 Nestle Capital Corporation, 4.87%
due 11/28/1994 3,985,390 3,985,390 3.0
2,000,000 Penney (J.C.) Co., Inc., 4.90%
due 11/10/1994 1,997,550 1,997,550 1.5
------------ ------------ ------
20,035,974 20,035,974 15.0
US Government & 7,000,000 Federal Home Loan Bank, 4.77%
Agency Obligations*** due 11/18/1994 6,984,233 6,984,233 5.2
Total Investments in
Short-Term Securities 27,020,207 27,020,207 20.2
Total Investments $116,808,565 125,306,754 93.8
============
Other Assets Less Liabilities 8,324,168 6.2
------------ ------
Net Assets $133,630,922 100.0%
============ ======
<FN>
++Non-income producing.
*Global Depositary Shares (GDS).
**American Depositary Receipt (ADR).
***Commercial Paper and certain US Government obligations are traded
on a discount basis; the interest rates shown are the discount
rates paid at the time of purchase by the Company.
(a)Warrants entitle the Company to purchase a predetermined number of
shares of Common Stock. The purchase price and number of shares are
subject to adjustment under certain conditions until the expiration date.
(b)Investment in companies 5% or more of whose outstanding securities are
held by the Company (such companies are defined as "Affiliated Companies"
in section 2(a)(3) of the Investment Company Act of 1940) are as follows:
Net Share Dividend
Industry Affiliate Activity Net Cost Income
Diagnostics Meris Laboratories, Inc. 10,000 $ 37,640 (1)
Medical EP Technologies Inc. 50,000 480,000 (1)
Specialties
(1) Non-income producing security.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
As of October 31, 1994
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$116,808,565) (Note 1a) $125,306,754
Receivables:
Securities sold $15,030,928
Capital shares sold 542,011
Dividends 83,853 15,656,792
-----------
Prepaid registration fees and other assets (Note 1e) 37,388
------------
Total assets 141,000,934
------------
Liabilities: Payables:
Securities purchased 6,125,166
Capital shares redeemed 270,071
Investment adviser (Note 2) 112,955
Distributor (Note 2) 55,525 6,563,717
-----------
Accrued expenses and other liabilities 806,295
------------
Total liabilities 7,370,012
------------
Net Assets: Net assets $133,630,922
============
Net Assets Class A Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized $ 1,874,869
Consist of: Class B Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized 2,007,413
Class C Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized 2,503
Class D Shares of Common Stock, $0.10 par value, 100,000,000 shares authorized 619
Paid-in capital in excess of par 127,482,975
Accumulated investment loss--net (266,006)
Undistributed realized capital loss on investments and foreign currency
transactions--net (5,969,929)
Unrealized appreciation on investments and foreign currency transactions--net 8,498,478
------------
Net assets $133,630,922
============
<PAGE>
Net Asset Value: Class A--Based on net assets of $67,825,880 and 18,748,694 shares outstanding $ 3.62
============
Class B--Based on net assets of $65,701,234 and 20,074,134 shares outstanding $ 3.27
============
Class C--Based on net assets of $81,894 and 25,025 shares outstanding $ 3.27
============
Class D--Based on net assets of $21,914 and 6,193 shares outstanding $ 3.54
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended October 31, 1994
<S> <S> <C> <C>
Investment Dividends (net of $13,294 foreign withholding tax) $ 541,929
Income Interest and discount earned 524,031
(Notes 1c & 1d): Other 15,664
-------------
Total income 1,081,624
-------------
Expenses: Investment advisory fees (Note 2) $ 654,729
Distribution fees--Class B (Note 2) 317,840
Transfer agent fees--Class B (Note 2) 98,827
Transfer agent fees--Class A (Note 2) 92,610
Printing and shareholder reports 75,687
Registration fees (Note 1e) 32,330
Professional fees 31,243
Custodian fees 18,678
Accounting services (Note 2) 14,365
Directors' fees and expenses 7,389
Pricing 1,725
Other 2,207
-----------
Total expenses 1,347,630
------------
Investment loss--net (266,006)
------------
<PAGE>
Realized & Realized loss from:
Unrealized Investments--net (5,883,085)
Gain (Loss) on Foreign currency transactions--net (31,077) (5,914,162)
Investments & -----------
Foreign Currency Change in unrealized appreciation on:
Transactions--Net Investments--net 7,170,022
(Notes 1b, Foreign currency transactions--net 2,256 7,172,278
1d & 3): ----------- ------------
Net realized and unrealized gain on investments and foreign currency
transactions--net 1,258,116
------------
Net Increase in Net Assets Resulting from Operations $ 992,110
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Oct. 31, April 30,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment loss--net $ (266,006) $ (1,106,018)
Realized gain (loss) on investments and foreign currency transactions--net (5,914,162) 13,090,689
Change in unrealized appreciation/depreciation on investments and foreign
currency transactions--net 7,172,278 (4,130,488)
------------ ------------
Net increase in net assets resulting from operations 992,110 7,854,183
------------ ------------
Dividends & Investment income--net:
Distributions to Class A -- (236,233)
Shareholders Realized gain on investments--net:
(Note 1f): Class A (4,761,771) --
Class B (4,901,206) --
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (9,662,977) (236,233)
------------ ------------
Capital Share Net increase in net assets derived from capital share transactions 7,856,655 30,228,261
Transactions ------------ ------------
(Note 4):
Net Assets: Total increase (decrease) in net assets (814,212) 37,846,211
Beginning of period 134,445,134 96,598,923
------------ ------------
End of period $133,630,922 $134,445,134
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Class A
The following per share data For the For the For the
and ratios have been derived Six Five-Month For the Eight-Month For the
from information provided in Months Period Year Period Year
the financial statements. Ended For the Year Ended Ended Ended Ended Ended
Oct. 31 April 30, April 30, Nov. 30, Nov. 30, March 31,
Increase (Decrease) in Net Asset Value 1994++ 1994++ 1993 1992 1991 1990 1990
<S> <S> <C> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 3.87 $ 3.59 $ 3.63 $ 9.19 $ 7.94 $ 9.13 $ 9.61
Operating -------- -------- -------- -------- -------- -------- --------
Performance: Investment income (loss)--net --+++++ (.02) .02 -- .03 .05 .05
Realized and unrealized gain on
investments and foreign currency
transactions--net .02 .31 (.06) .88 2.08 (.75) .96
-------- -------- -------- -------- -------- -------- --------
Total from investment operations .02 .29 (.04) .88 2.11 (.70) 1.01
-------- -------- -------- -------- -------- -------- --------
Less distributions:
Investment income--net -- (.01) -- -- (.03) (.08) (.07)
Realized gain on investments--net (.27) -- -- (2.47) (.83) (.41) (1.42)
Return of capital--net -- -- -- (3.97) -- -- --
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions (.27) (.01) -- 6.44 (.86) (.49) (1.49)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 3.62 $ 3.87 $ 3.59 $ 3.63 $ 9.19 $ 7.94 $ 9.13
======== ======== ======== ======== ======== ======== ========
Total Based on net asset value per share 1.16%+++ 8.19% (1.10%) 10.96%+++ 29.44% (8.75%)+++ 11.36%
Investment ======== ======== ======== ======== ======== ======== ========
Return:**
Ratios to Expenses, net of reimbursement 1.56%* 1.55% 1.85% 1.56%* 1.61% 1.77%* 1.55%
Average ======== ======== ======== ======== ======== ======== ========
Net Assets: Expenses 1.56%* 1.55% 1.85% 1.56%* 1.61% 1.77%* 1.61%
======== ======== ======== ======== ======== ======== ========
Investment income (loss)--net .10%* (.48%) .48% (.16%)* .27% .62%* .78%
======== ======== ======== ======== ======== ======== ========
<PAGE>
Supplemental Net assets, end of period (in
Data: thousands) $ 67,826 $ 70,753 $ 63,528 $ 61,132 $125,979 $114,852 $140,635
======== ======== ======== ======== ======== ======== ========
Portfolio turnover 98.63% 133.58% 103.06% 147.63% 206.29% 159.11% 122.57%
======== ======== ======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Calculation is based on average shares outstanding during the period.
+++Aggregate total investment return.
+++++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Class B
The following per share data For the For the For the
and ratios have been derived Six Five-Month For the Eight-Month For the
from information provided in Months Period Year Period Year
the financial statements. Ended For the Year Ended Ended Ended Ended Ended
Oct. 31 April 30, April 30, Nov. 30, Nov. 30, March 31,
Increase (Decrease) in Net Asset Value 1994++++ 1994++++ 1993++++ 1992++++ 1991 1990 1990++++
<S> <S> <C> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 3.55 $ 3.31 $ 3.38 $ 9.01 $ 7.84 $ 9.05 $ 9.57
Operating -------- -------- -------- -------- -------- -------- --------
Performance: Investment income (loss)--net (.02) (.05) (.01) (.02) (.03) (.01) (.06)
Realized and unrealized gain on
investments and foreign currency
transactions--net .01 .29 (.06) .83 2.03 (.75) .97
-------- -------- -------- -------- -------- -------- --------
Total from investment operations (.01) .24 (.07) .81 2.00 (.76) .91
-------- -------- -------- -------- -------- -------- --------
Less distributions:
Investment income--net -- -- -- -- -- (.04) (.01)
Realized gain on investments--net (.27) -- -- (2.47) (.83) (.41) (1.42)
Return of capital--net -- -- -- (3.97) -- -- --
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions (.27) -- -- (6.44) (.83) (.45) (1.43)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 3.27 $ 3.55 $ 3.31 $ 3.38 $ 9.01 $ 7.84 $ 9.05
======== ======== ======== ======== ======== ======== ========
<PAGE>
Total Based on net asset value per share .38%+++ 7.25% (2.07%) 10.26%+++ 28.30% (9.37%)+++ 10.23%
Investment ======== ======== ======== ======== ======== ======== ========
Return:**
Ratios to Expenses, excluding distribution
Average fees and net of reimbursement 1.59%* 1.56% 1.89% 1.58%* 1.63% 1.82%* 1.60%
Net Assets: ======== ======== ======== ======== ======== ======== ========
Expenses, net of reimbursement 2.59%* 1.56% 2.89% 2.58%* 2.63% 2.82%* 2.60%
======== ======== ======== ======== ======== ======== ========
Expenses 2.59%* 2.56% 2.89% 2.58%* 2.63% 2.82%* 2.68%
======== ======== ======== ======== ======== ======== ========
Investment income (loss)--net (.94%)* (1.52%) (.41%) (1.02%)* (.79%) (.36%)* (.31%)
======== ======== ======== ======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 65,701 $ 63,692 $ 33,071 $ 5,356 $ 6,007 $ 3,222 $ 2,412
======== ======== ======== ======== ======== ======== ========
Portfolio turnover 98.63% 133.58% 103.06% 147.63% 206.29% 159.11% 122.57%
======== ======== ======== ======== ======== ======== ========
<CAPTION>
The following per share data and ratios have been derived For the Period
from information provided in the financial statements. October 21, 1994++ to
October 31, 1994
Increase (Decrease) in Net Asset Value: Class C++++ Class D++++
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 3.27 $ 3.61
Operating --------- ---------
Performance: Investment income (loss)--net --+++++ --+++++
Realized and unrealized gain on investments and foreign
currency transactions--net -- (.07)
--------- ---------
Total from investment operations -- (.07)
--------- ---------
Net asset value, end of period $ 3.27 $ 3.54
========= =========
Total Based on net asset value per share 0.00%+++ (1.94%)+++
Investment ========= =========
Return:**
<PAGE>
Ratios to Expenses, excluding distribution fees and net of reimbursement 1.80%* 1.80%*
Average ========= =========
Net Assets: Expenses 2.80%* 2.05%*
========= =========
Investment income (loss)--net .34%* (.30%)*
========= =========
Supplemental Net assets, end of period (in thousands) $ 82 $ 22
Data: ========= =========
Portfolio turnover 98.63% 98.63%
========= =========
<FN>
*Annualized.
**Total investment returns exclude the effect of sales loads.
++Commencement of Operations.
++++Calculation is based on average number of shares outstanding during the period.
+++Aggregate total investment return.
+++++Amount was less than $0.01 per share.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Healthcare Fund, Inc. (the "Company") is registered
under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. These unaudited
interim financial statements reflect all adjustments which are, in
the opinion of management, necessary to a fair statement of the
results for the interim period presented. All such adjustments
are of a normal recurring nature. The Fund offers four classes of
shares under the Merrill Lynch Select Pricing SM System. Shares
of Class A and Class D are sold with a front-end sales charge.
Shares of Class B and Class C may be subject to a contingent
deferred sales charge. All classes of shares have identical voting,
dividend, liquidation and other rights and the same terms and
conditions, except that Class B, Class C and Class D Shares bear
certain expenses related to the account maintenance of such
shares, and Class B and Class C Shares also bear certain expenses
related to the distribution of such shares. Each class has exclusive
voting rights with respect to matters relating to its account
maintenance and distribution expenditures. The following is a
summary of significant accounting policies followed by the
Company.
<PAGE>
(a) Valuation of securities--Portfolio securities which are traded
on stock exchanges are valued at the last sale price on the
exchange on which such securities are traded, as of the close of
business on the day the securities are being valued or, lacking any
sales, at the last available bid price. In cases where securities are
traded on more than one exchange, the securities are valued on
the exchange designated by or under the authority of the Board of
Directors as the primary market. Securities traded in the over-the-
counter market are valued at the last available bid price in the
over-the-counter market prior to the time of valuation. Short-term
investments are valued at amortized cost, which approximates
market value. Securities and assets for which market quotations
are not readily available, including venture capital investments,
are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Company.
(b) Foreign currency transactions--Transactions denominated in
foreign currencies are recorded at the exchange rate prevailing
when recognized. Assets and liabilities denominated in foreign
currencies are valued at the exchange rate at the end of the period.
Foreign currency transactions are the result of settling (realized)
or valuing (unrealized) receivables or payables expressed in
foreign currencies into US dollars. Realized and unrealized gains
or losses from investments include the effects of foreign exchange
rates on investments.
NOTES TO FINANCIAL STATEMENTS (continued)
The Company is authorized to enter into forward foreign exchange
contracts as a hedge against either specific transactions or
portfolio positions. Such contracts are not entered on the Company's
records. However, the effect on operations is recorded from the
date the Company enters into such contracts. Premium or discount
is amortized over the life of the contracts.
The Company may also purchase or sell listed or over-the-counter
foreign currency options, foreign currency futures and related
options on foreign currency futures as a short or long hedge
against possible variations in foreign exchange rates. Such trans-
actions may be effected with respect to hedges on non-US dollar
denominated securities owned by the Company, sold by the
Company but not yet delivered, or committed or anticipated to be
purchased by the Company.
(c) Income taxes--It is the Company's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required. Under the applicable foreign tax law,
a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
<PAGE>
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Dividend income is recorded on the ex-dividend
date, except that if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as soon as the
funds are informed of the ex-dividend date. Interest income
(including amortization of discount) is recognized on the accrual
basis. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(f) Dividends and Distributions--Dividends and distributions paid
by the Company are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Company has entered into an Investment Advisory Agreement
with Merrill Lynch Asset Management, L.P. ("MLAM"). The general
partner of MLAM is Princeton Services, Inc. ("PSI"), an indirect wholly-
owned subsidiary of Merrill Lynch & Co. ("ML & Co.") The limited
partners are ML & Co. and Merrill Lynch Investment Management,
Inc. ("MLIM"), which is also an indirect wholly-owned subsidiary
of ML & Co.
MLAM is responsible for the management of the Company's
portfolio and provides, or arranges for affiliates to provide, the
administrative services necessary for the operation of the Company.
As compensation for its services to the Company, the Investment
Adviser receives monthly compensation at the annual rate of 1.0%
of the average daily net assets of the Company.
Certain states in which shares of the Company are qualified for
sale impose limitations on the expenses of the Company. The most
restrictive annual expense limitation requires that the Investment
Adviser reimburse the Company to the extent that expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed 2.5% of the Com-
pany's first $30 million of average daily net assets, 2.0% of the
Company's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. The investment
adviser's obligation to reimburse the Company is limited to the
amount of the investment advisory fee.
No fee payment will be made to MLAM during any fiscal year
which will cause such expenses to exceed the most restrictive
expense limitation at the time of such payment.
Pursuant to the distribution plans (the "Distribution Plans")
adopted by the Company in accordance with Rule 12b-1 under
the Investment Company Act of 1940, the Company pays the
Distributor ongoing account maintenance and distribution fees.
The fees are accrued daily and paid monthly at annual rates based
upon the average daily net assets of the shares as follows:
<PAGE>
Account
Maintenance Fee Distribution Fee
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to
the Company. The ongoing account maintenance fee compensates
the Distributor and MLPF&S for providing account maintenance
services to Class B, Class C and Class D shareholders. The ongoing
distribution fee compensates the Distributor and MLPF&S for
providing shareholder and distribution-related services to Class B
and Class C shareholders.
For the six months ended October 31, 1994, MLFD earned under-
writing discounts and MLPF&S earned dealer concessions on sales
of the Company's Class A and Class D shares as follows:
MLFD MLPF&S
Class A $4,053 $69,464
Class D $ 36 $ 650
MLPF&S received contingent deferred sales charges of $83,278
relating to transactons in Class B Shares and $21,650 in com-
missions on the execution of portfolio security transactions for the
Company for the six months ended October 31, 1994.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary
of ML & Co., is the Company's transfer agent.
Accounting services are provided to the Company by MLAM at cost.
Certain officers and/or directors of the Company are officers and/or
directors of MLAM, MLIM, MLPF&S, PSI, FDS, MLFD, and/or
ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term
securities, for the six months ended October 31, 1994 were
$108,096,286 and $104,100,476, respectively.
Net realized and unrealized gains (losses) as of October 31, 1994
were as follows:
<PAGE>
Realized Unrealized
Losses Gains (Losses)
Long-term investments $ (5,879,846) $ 8,498,189
Short-term investments (3,239) --
Foreign currency transactions (31,077) 289
------------ -----------
Total $ (5,914,162) $ 8,498,478
============ ===========
As of October 31, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $8,498,189, of which $15,028,964
related to appreciated securities and $6,530,775 related to depre-
ciated securities. The aggregate cost of investments at October 31,
1994 for Federal income tax purposes was $116,808,565.
4. Capital Shares Transactions:
Net increase in net assets derived from capital share transactions
was $7,856,655 and $30,228,261 for the six months ended October 31,
1994 and the year ended April 30, 1994, respectively.
Transactions in capital shares for each class were as follows:
Class A Shares for the Six Months Dollar
Ended October 31, 1994 Shares Amount
Shares sold 3,799,718 $ 13,621,821
Shares issued to shareholders in reinvest-
ment distributions 1,236,168 4,042,270
------------ ------------
Total issued 5,035,886 17,664,091
Shares redeemed (4,562,271) (16,411,322)
------------ ------------
Net increase 473,615 $ 1,252,769
============ ============
Class A Shares for Year Dollar
Ended April 30, 1994 Shares Amount
Shares sold 6,174,049 $ 23,817,331
Shares issued to shareholders in reinvest-
ment of dividends 52,729 194,042
------------ ------------
Total issued 6,226,778 24,011,373
Shares redeemed (5,667,645) (22,007,663)
------------ ------------
Net increase 559,133 $ 2,003,710
============ ============
<PAGE>
Class B Shares for the Six Months Dollar
Ended October 31, 1994 Shares Amount
Shares sold 6,718,952 $ 21,834,578
Shares issued to shareholders in reinvest-
ment of distributions 1,486,559 4,415,082
------------ ------------
Total issued 8,205,511 26,249,660
Shares redeemed (6,095,151) (19,748,448)
------------ ------------
Net increase 2,110,360 $ 6,501,212
============ ============
NOTES TO FINANCIAL STATEMENTS (concluded)
Class B Shares for the Year Dollar
Ended April 30, 1994 Shares Amount
Shares sold 13,579,944 $ 48,115,789
Shares issued to shareholders in reinvest-
ment of dividends and distributions -- --
------------ ------------
Total issued 13,579,944 48,115,789
Shares redeemed (5,621,030) (19,891,238)
------------ ------------
Net increase 7,958,914 $ 28,224,551
============ ============
Class C Shares for the Period Dollar
Oct. 21, 1994++ to Oct. 31, 1994 Shares Amount
Shares sold 25,026 $ 81,586
Shares issued to shareholders in reinvest-
ment of dividends and distributions -- --
------------ ------------
Total issued 25,026 81,586
Shares redeemed (1) (3)
------------ ------------
Net increase 25,025 $ 81,583
============ ============
[FN]
++Commencement of Operations.
<PAGE>
Class D Shares for the Period Dollar
Oct. 21, 1994++ to Oct. 31, 1994 Shares Amount
Shares sold 123,186 $ 442,265
Shares issued to shareholders in reinvest-
ment of dividends and distributions -- --
------------ ------------
Total issued 123,186 442,265
Shares redeemed (116,993) (421,174)
------------ ------------
Net increase 6,193 $ 21,091
------------ ------------
[FN]
++Commencement of Operations.
5. Commitments:
At October 31, 1994, the Company had entered into forward
exchange contracts under which it had agreed to buy and sell
various foreign currencies with an approximate value of $478,000.
PORTFOLIO INFORMATION
Worldwide
Investments
As of 10/31/94
Percent Breakdown of Percent of
Securities by Country Net Assets
United States 55.6%
Netherlands 6.4
Sweden 4.4
India 2.3
Australia 1.5
Japan 1.5
United Kingdom 1.5
France 0.4
<PAGE>
Industries Represented Percent of
In the Portfolio Net Assets
Pharmaceutical--Prescription 20.1%
Medical Specialties 18.2
Health Care Cost Containment 12.8
Biotechnology 10.2
Pharmaceutical--Diversified 9.0
Diagnostics 3.3
Ten Largest Holdings Percent of
Represented in the Portfolio Net Assets
AKZO N.V. 6.4%
EP Technologies, Inc. 4.8
Warner-Lambert Co. 4.6
Cordis Corp. 4.3
Medtronic, Inc. 3.9
Lilly (Eli) & Co. 3.7
United Healthcare Corp. 3.6
Chiron Corp. 3.0
IVAX Corp. 3.0
Ranbaxy Laboratories Ltd. (GDS) 2.3
PORTFOLIO CHANGES
For the Quarter Ended October 31, 1994
Additions *Auto Immune Corp.
Biogen, Inc.
Biomira Inc.
InControl, Inc.
Kissei Pharmaceutical Co., Ltd.
*MediSense, Inc.
*Mylan Laboratories
RightCHOICE Managed Care, Inc.
Teva Pharmaceuticals Industries, Inc. (ADR)
United Healthcare Corp.
*Visix Inc.
<PAGE>
Deletions Arrow International, Inc.
*Auto Immune Corp.
British Biotech PLC (ADR)
Caremark International, Inc.
Carter-Wallace, Inc.
Ciba-Geigy AG (Registered)
Coventry Corp.
*MediSense, Inc.
Merck & Co., Inc.
*Mylan Laboratories
Oxford Health Plans, Inc.
Penederm Inc.
Quantum Health Resources, Inc.
Roberts Pharmaceutical Corporation
Roche Holdings AG-PC
Scios Nova, Inc.
Sierra Health Services, Inc.
Value Health Inc.
*Visix Inc.
[FN]
*Added and deleted in the same quarter.
