N-Q 1 d369527dnq.htm BLACKROCK HEALTH SCIENCES TRUST BlackRock Health Sciences Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-21702

Name of Fund: BlackRock Health Sciences Trust (BME)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Health Sciences Trust,

55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2017

Date of reporting period: 03/31/2017

Item 1 – Schedule of Investments

 

Schedule of Investments March 31, 2017 (Unaudited)      BlackRock Health Sciences Trust (BME)  
     (Percentages shown are based on Net Assets)  

 

Common Stocks    Shares      Value  

Biotechnology — 24.6%

      

AbbVie, Inc. (a)

      38,586      $ 2,514,264  

Acceleron Pharma, Inc. (a)(b)

      44,300        1,172,621  

Acerta Pharma BV, Series B (Acquired 2/01/16, cost $986,402) (b)(c)

      17,146,440        1,455,733  

Agios Pharmaceuticals, Inc. (a)(b)

      9,600        560,640  

Alder Biopharmaceuticals, Inc. (b)

      5,829        121,243  

Alkermes PLC (a)(b)

      28,000        1,638,000  

Alnylam Pharmaceuticals, Inc. (a)(b)

      14,000        717,500  

Amgen, Inc. (a)

      71,322        11,701,801  

Aquinox Pharmaceuticals, Inc. (a)(b)

      22,383        373,572  

Audentes Therapeutics, Inc. (b)

      10,083        171,814  

Avexis, Inc. (a)(b)

      22,752        1,729,835  

Biogen, Inc. (a)(b)

      23,348        6,383,810  

BioMarin Pharmaceutical, Inc. (a)(b)

      16,000        1,404,480  

Bioverativ, Inc. (a)(b)

      11,674        635,766  

Celgene Corp. (a)(b)

      97,986        12,192,391  

Galapagos NV — ADR (a)(b)

      4,200        361,998  

Genomic Health, Inc. (a)(b)

      16,500        519,585  

Gilead Sciences, Inc. (a)

      67,200        4,564,224  

Global Blood Therapeutics, Inc. (a)(b)

      16,088        592,843  

Halozyme Therapeutics, Inc. (a)(b)

      49,200        637,632  

Incyte Corp. (a)(b)

      20,500        2,740,235  

Karyopharm Therapeutics, Inc. (a)(b)

      6,500        83,460  

Lion Biotechnologies, Inc. (b)

      62,723        467,286  

Myovant Sciences Ltd. (b)

      29,453        345,778  

Neurocrine Biosciences, Inc. (a)(b)

      19,562        847,035  

Otonomy, Inc. (b)

      9,400        115,150  

Prothena Corp. PLC (b)

      2,244        125,193  

PTC Therapeutics, Inc. (a)(b)

      15,700        154,488  

Regeneron Pharmaceuticals, Inc. (a)(b)

      9,058        3,510,066  

REGENXBIO, Inc. (b)

      36,250        699,625  

Sage Therapeutics, Inc. (a)(b)

      15,752        1,119,495  

Sarepta Therapeutics, Inc. (a)(b)

      37,450        1,108,520  

Seattle Genetics, Inc. (a)(b)

      22,767        1,431,134  

Spark Therapeutics, Inc. (a)(b)

      4,600        245,364  

Syndax Pharmaceuticals, Inc. (b)

      52,584        721,452  

TESARO, Inc. (a)(b)

      18,431        2,835,978  

Ultragenyx Pharmaceutical, Inc. (a)(b)

      8,300        562,574  

Vertex Pharmaceuticals, Inc. (a)(b)

      60,905        6,659,962  
     

 

 

  
                73,222,547  

Diversified Consumer Services — 0.4%

      

Service Corp. International

      42,000        1,296,960  

Health Care Equipment & Supplies — 21.8%

      

Abbott Laboratories (a)

      117,900        5,235,939  

Baxter International, Inc. (a)

      140,900        7,307,074  

Becton Dickinson and Co. (a)

      21,533        3,950,014  

Boston Scientific Corp. (a)(b)

      346,700        8,622,429  

CR Bard, Inc. (a)

      25,453        6,326,089  

Edwards Lifesciences Corp. (a)(b)

      15,900        1,495,713  

Hologic, Inc. (a)(b)

      76,600        3,259,330  

Intuitive Surgical, Inc. (a)(b)

      5,700        4,368,879  
Common Stocks    Shares      Value  

Health Care Equipment & Supplies (continued)

      

iRhythm Technologies, Inc. (b)

      4,883      $ 183,601  

Masimo Corp. (a)(b)

      22,200        2,070,372  

Medtronic PLC (a)

      169,800        13,679,088  

Stryker Corp.

      64,900        8,544,085  
     

 

 

  
                65,042,613  

Health Care Providers & Services — 27.9%

      

Aetna, Inc. (a)

      44,311        5,651,868  

Amedisys, Inc. (b)

      56,860        2,904,977  

AmerisourceBergen Corp. (a)

      15,000        1,327,500  

Anthem, Inc. (a)

      50,300        8,318,614  

Cardinal Health, Inc. (a)

      36,830        3,003,488  

Centene Corp. (b)

      35,700        2,543,982  

Cigna Corp. (a)

      44,700        6,548,103  

DaVita, Inc. (a)(b)

      64,994        4,417,642  

Express Scripts Holding Co. (a)(b)

      18,500        1,219,335  

HCA Holdings, Inc. (a)(b)

      44,794        3,986,218  

HealthEquity, Inc. (a)(b)

      12,600        534,870  

Humana, Inc. (a)

      38,000        7,833,320  

McKesson Corp. (a)

      29,600        4,388,496  

Quest Diagnostics, Inc. (a)

      55,600        5,459,364  

Teladoc, Inc. (a)(b)

      21,200        530,000  

UnitedHealth Group, Inc. (a)

      130,802        21,452,836  

Universal Health Services, Inc., Class B (a)

      18,900        2,352,105  

WellCare Health Plans, Inc. (a)(b)

      6,300        883,323  
     

 

 

  
                83,356,041  

Life Sciences Tools & Services — 2.0%

      

Agilent Technologies, Inc. (a)

      37,300        1,972,051  

Thermo Fisher Scientific, Inc. (a)

      25,100        3,855,360  
     

 

 

  
                5,827,411  

Pharmaceuticals — 21.3%

      

Allergan PLC (a)

      36,085        8,621,428  

AstraZeneca PLC

      52,976        3,257,331  

Bristol-Myers Squibb Co. (a)

      94,162        5,120,530  

Chugai Pharmaceutical Co. Ltd.

      7,900        271,944  

Dermira, Inc. (a)(b)

      22,100        753,831  

Eli Lilly & Co. (a)

      75,800        6,375,538  

GlaxoSmithKline PLC

      66,800        1,388,965  

Intra-Cellular Therapies, Inc. (b)

      13,701        222,641  

Jazz Pharmaceuticals PLC (a)(b)

      11,100        1,610,943  

Johnson & Johnson (a)

      61,870        7,705,910  

Merck & Co., Inc. (a)

      108,000        6,862,320  

Merck KGaA

      26,200        2,985,584  

Mylan NV (a)(b)

      64,400        2,510,956  

Novartis AG — ADR

      9,600        712,992  

Pacira Pharmaceuticals, Inc. (a)(b)

      5,100        232,560  

Pfizer, Inc. (a)

      359,398        12,295,006  
 
      Portfolio Abbreviations          
ADR    American Depositary Receipt      EUR    Euro    USD    U.S. Dollar
CVR    Contingent Value Rights      GBP    British Pound      

 

 

          MARCH 31, 2017    1

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)  
  

 

Common Stocks    Shares      Value  

Pharmaceuticals (continued)

      

Zoetis, Inc. (a)

      46,500      $ 2,481,705  
     

 

 

  
                63,410,184  

Total Common Stocks — 98.0%

               292,155,756  
     
Preferred Stocks                

Biotechnology — 0.2%

      

Ovid Therapeutics, Inc. (Acquired 8/7/15, Cost $503,166), 0.00% (b)(c)

      80,765        545,164  
     
Rights — 0.0%                

Biotechnology — 0.0%

      

Dyax Corp. — CVR (b)

      61,727        141,355  

Total Long-Term Investments

(Cost — $206,591,314) — 98.2%

               292,842,275  
     
                  
Short-Term Securities    Shares      Value  

BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.60% (d)(e)

      5,850,857      $ 5,850,857  

Total Short-Term Securities

(Cost — $5,850,857) — 1.9%

               5,850,857  

Total Investments Before Options Written

(Cost — $212,442,171*) — 100.1%

               298,693,132  
     
Options Written                

(Premiums Received — $2,659,620) — (0.7)%

               (2,146,847 ) 

Total Investments Net of Options Written — 99.4%

         296,546,285  

Other Assets Less Liabilities — 0.6%

         1,687,271  
     

 

 

  

Net Assets — 100.0%

       $ 298,233,556  
     

 

 

  
 
      Notes to Schedule of Investments

 

* As of March 31, 2017, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 214,014,568  
  

 

 

  

Gross unrealized appreciation

    $ 86,973,569  

Gross unrealized depreciation

      (2,295,005 ) 
  

 

 

  

Net unrealized appreciation

    $ 84,678,564  
  

 

 

  

 

(a) All or a portion of security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.

 

(b) Non-income producing security.

 

(c) Restricted securities as to resale, excluding 144A securities. As of period end, the Trust held restricted securities with a current value of $2,000,897 and an original cost of $1,489,568 which was 0.7% of its net assets.

 

(d) Current yield as of period end.

 

(e) During the period ended March 31, 2017, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliates    Shares Held at
December 31,
2016		      Net
Activity		     Shares Held at
March 31,
2017		      Value at
March 31,
2017		      Income     Realized
Gain		      Change  in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      8,611,967        (2,761,110 )      5,850,857      $ 5,850,857      $ 8,475       —        —  

SL Liquidity Series, LLC, Money Market Series

      126,889        (126,889 )      —        —        1,580 1    $ 18        —  

Total

            $ 5,850,857      $ 10,055     $ 18        —  
          

 

 

  

 

  1   

Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

2         MARCH 31, 2017     

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)  

 

•  

For Trust compliance purposes, the Trust’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

      Derivative Financial Instruments Outstanding as of Period End

 

Exchange-Traded Options Written

                  
Description    Put/
Call		      Expiration
Date		     

Strike

Price

      Contracts      Value  

Boston Scientific Corp.

      Call        4/03/17        USD        23.90        83      $ (8,076 ) 

Abbott Laboratories

      Call        4/07/17        USD        45.50        109        (436 ) 

AbbVie, Inc.

      Call        4/07/17        USD        63.50        74        (13,283 ) 

AmerisourceBergen Corp.

      Call        4/07/17        USD        92.00        31        (930 ) 

Baxter International, Inc.

      Call        4/07/17        USD        50.50        83        (12,575 ) 

Biogen, Inc.

      Call        4/07/17        USD        300.00        57        (3,135 ) 

Cigna Corp.

      Call        4/07/17        USD        152.50        47        (8,554 ) 

Eli Lilly & Co.

      Call        4/07/17        USD        83.00        170        (27,370 ) 

Gilead Sciences, Inc.

      Call        4/07/17        USD        70.00        58        (406 ) 

HCA Holdings, Inc.

      Call        4/07/17        USD        86.00        48        (16,080 ) 

Humana, Inc.

      Call        4/07/17        USD        207.50        15        (2,550 ) 

McKesson Corp.

      Call        4/07/17        USD        155.00        99        (1,485 ) 

Regeneron Pharmaceuticals, Inc.

      Call        4/07/17        USD        365.00        16        (36,880 ) 

UnitedHealth Group, Inc.

      Call        4/07/17        USD        162.50        100        (22,900 ) 

UnitedHealth Group, Inc.

      Call        4/07/17        USD        170.00        70        (945 ) 

Vertex Pharmaceuticals, Inc.

      Call        4/07/17        USD        95.00        63        (89,775 ) 

Celgene Corp.

      Call        4/13/17        USD        127.00        38        (2,717 ) 

Humana, Inc.

      Call        4/13/17        USD        220.00        29        (3,118 ) 

Masimo Corp.

      Call        4/13/17        USD        72.00        32        (68,032 ) 

Medtronic PLC

      Call        4/13/17        USD        83.00        102        (969 ) 

Merck & Co., Inc.

      Call        4/13/17        USD        66.00        114        (1,368 ) 

Pfizer, Inc.

      Call        4/13/17        USD        34.00        30        (1,305 ) 

Pfizer, Inc.

      Call        4/13/17        USD        34.50        24        (432 ) 

UnitedHealth Group, Inc.

      Call        4/13/17        USD        170.00        101        (2,020 ) 

Abbott Laboratories

      Call        4/21/17        USD        46.00        190        (2,945 ) 

Acceleron Pharma, Inc.

      Call        4/21/17        USD        30.00        151        (5,285 ) 

Agilent Technologies, Inc.

      Call        4/21/17        USD        55.00        65        (1,463 ) 

Agios Pharmaceuticals, Inc.

      Call        4/21/17        USD        60.00        33        (5,940 ) 

Alkermes PLC

      Call        4/21/17        USD        65.00        49        (3,308 ) 

Allergan PLC

      Call        4/21/17        USD        250.00        63        (5,670 ) 

Alnylam Pharmaceuticals, Inc.

      Call        4/21/17        USD        65.00        30        (1,050 ) 

Amgen, Inc.

      Call        4/21/17        USD        167.47        127        (14,559 ) 

Amgen, Inc.

      Call        4/21/17        USD        180.00        34        (204 ) 

Anthem, Inc.

      Call        4/21/17        USD        166.00        52        (15,850 ) 

Aquinox Pharmaceuticals, Inc.

      Call        4/21/17        USD        20.00        78        (3,120 ) 

Avexis, Inc.

      Call        4/21/17        USD        75.00        80        (35,600 ) 

BioMarin Pharmaceutical, Inc.

      Call        4/21/17        USD        95.00        56        (3,640 ) 

Bioverativ, Inc.

      Call        4/21/17        USD        55.00        40        (6,300 ) 

Boston Scientific Corp.

      Call        4/21/17        USD        26.00        514        (3,084 ) 

Bristol-Myers Squibb Co.

      Call        4/21/17        USD        57.00        330        (9,570 ) 

Cardinal Health, Inc.

      Call        4/21/17        USD        82.00        70        (8,400 ) 

Celgene Corp.

      Call        4/21/17        USD        125.00        78        (15,483 ) 

Cigna Corp.

      Call        4/21/17        USD        155.00        55        (6,325 ) 

CR Bard, Inc.

      Call        4/21/17        USD        250.00        89        (20,470 ) 

DaVita, Inc.

      Call        4/21/17        USD        67.50        227        (28,943 ) 

Galapagos NV — ADR

      Call        4/21/17        USD        75.00        14        (17,010 ) 

Genomic Health, Inc.

      Call        4/21/17        USD        30.00        57        (11,828 ) 

Global Blood Therapeutics, Inc.

      Call        4/21/17        USD        40.00        50        (10,750 ) 

Halozyme Therapeutics, Inc.

      Call        4/21/17        USD        15.00        150        (3,750 ) 

HCA Holdings, Inc.

      Call        4/21/17        USD        90.00        80        (11,000 ) 

Hologic, Inc.

      Call        4/21/17        USD        43.00        130        (6,500 ) 

Humana, Inc.

      Call        4/21/17        USD        220.00        22        (1,375 ) 

Incyte Corp.

      Call        4/21/17        USD        155.00        72        (4,500 ) 

Intuitive Surgical, Inc.

      Call        4/21/17        USD        765.00        20        (39,100 ) 

Johnson & Johnson

      Call        4/21/17        USD        121.05        108        (44,999 ) 

Karyopharm Therapeutics, Inc.

      Call        4/21/17        USD        15.00        22        (990 ) 

Masimo Corp.

      Call        4/21/17        USD        95.00        49        (5,512 ) 

 

 

          MARCH 31, 2017    3

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)  

 

Description    Put/
Call		      Expiration
Date		   

Strike

Price

      Contracts      Value  

Medtronic PLC

      Call      4/21/17      USD        82.50        75      $ (1,950 ) 

Mylan NV

      Call      4/21/17      USD        45.00        105        (420 ) 

Neurocrine Biosciences, Inc.

      Call      4/21/17      USD        45.00        18        (4,410 ) 

Neurocrine Biosciences, Inc.

      Call      4/21/17      USD        48.00        52        (10,530 ) 

Pacira Pharmaceuticals, Inc.

      Call      4/21/17      USD        50.00        8        (500 ) 

Pfizer, Inc.

      Call      4/21/17      USD        33.00        151        (19,857 ) 

PTC Therapeutics, Inc.

      Call      4/21/17      USD        23.00        54        (2,970 ) 

Regeneron Pharmaceuticals, Inc.

      Call      4/21/17      USD        390.00        15        (13,500 ) 

Sarepta Therapeutics, Inc.

      Call      4/21/17      USD        35.00        130        (3,900 ) 

Seattle Genetics, Inc.

      Call      4/21/17      USD        70.00        80        (4,600 ) 

Spark Therapeutics, Inc.

      Call      4/21/17      USD        60.00        16        (1,120 ) 

Teladoc, Inc.

      Call      4/21/17      USD        22.50        74        (21,090 ) 

TESARO, Inc.

      Call      4/21/17      USD        160.00        77        (36,960 ) 

Thermo Fisher Scientific, Inc.

      Call      4/21/17      USD        158.30        45        (2,917 ) 

UnitedHealth Group, Inc.

      Call      4/21/17      USD        170.00        70        (5,845 ) 

Universal Health Services, Inc., Class B

      Call      4/21/17      USD        125.00        92        (21,850 ) 

Vertex Pharmaceuticals, Inc.

      Call      4/21/17      USD        100.00        129        (129,645 ) 

WellCare Health Plans, Inc.

      Call      4/21/17      USD        145.00        22        (1,925 ) 

Zoetis, Inc.

      Call      4/21/17      USD        55.00        66        (1,320 ) 

Abbott Laboratories

      Call      4/28/17      USD        44.50        113        (8,419 ) 

AmerisourceBergen Corp.

      Call      4/28/17      USD        90.00        21        (3,098 ) 

Amgen, Inc.

      Call      4/28/17      USD        182.50        79        (2,331 ) 

Anthem, Inc.

      Call      4/28/17      USD        167.50        43        (15,158 ) 

Cardinal Health, Inc.

      Call      4/28/17      USD        82.50        58        (7,395 ) 

Celgene Corp.

      Call      4/28/17      USD        126.00        139        (37,106 ) 

Celgene Corp.

      Call      4/28/17      USD        128.00        87        (18,401 ) 

Cigna Corp.

      Call      4/28/17      USD        155.00        54        (15,066 ) 

Edwards Lifesciences Corp.

      Call      4/28/17      USD        94.00        55        (19,938 ) 

Express Scripts Holding Co.

      Call      4/28/17      USD        67.50        64        (7,456 ) 

HCA Holdings, Inc.

      Call      4/28/17      USD        87.00        81        (30,780 ) 

Humana, Inc.

      Call      4/28/17      USD        210.00        45        (15,412 ) 

Humana, Inc.

      Call      4/28/17      USD        220.00        8        (1,060 ) 

Jazz Pharmaceuticals PLC

      Call      4/28/17      USD        136.00        25        (26,875 ) 

Medtronic PLC

      Call      4/28/17      USD        81.50        292        (22,338 ) 

Merck & Co., Inc.

      Call      4/28/17      USD        66.50        114        (9,462 ) 

Pfizer, Inc.

      Call      4/28/17      USD        34.50        324        (12,636 ) 

UnitedHealth Group, Inc.

      Call      4/28/17      USD        165.00        114        (35,055 ) 

Zoetis, Inc.

      Call      4/28/17      USD        55.50        100        (2,750 ) 

Aetna, Inc.

      Call      5/01/17      USD        132.50        21        (2,141 ) 

Becton Dickinson and Co.

      Call      5/01/17      USD        184.50        75        (19,644 ) 

Aetna, Inc.

      Call      5/05/17      USD        129.00        30        (6,945 ) 

Amgen, Inc.

      Call      5/05/17      USD        167.50        9        (2,682 ) 

Baxter International, Inc.

      Call      5/05/17      USD        52.00        42        (4,389 ) 

Jazz Pharmaceuticals PLC

      Call      5/05/17      USD        147.00        25        (10,625 ) 

Pfizer, Inc.

      Call      5/05/17      USD        34.50        252        (12,600 ) 

Anthem, Inc.

      Call      5/11/17      USD        166.00        52        (22,833 ) 

AbbVie, Inc.

      Call      5/12/17      USD        66.00        61        (6,771 ) 

Gilead Sciences, Inc.

      Call      5/12/17      USD        70.00        177        (21,683 ) 

McKesson Corp.

      Call      5/12/17      USD        155.00        4        (1,050 ) 

Merck & Co., Inc.

      Call      5/12/17      USD        63.50        59        (9,410 ) 

Mylan NV

      Call      5/12/17      USD        41.00        120        (9,960 ) 

Pfizer, Inc.

      Call      5/12/17      USD        34.50        329        (17,602 ) 

Aetna, Inc.

      Call      5/19/17      USD        135.00        104        (11,492 ) 

Agilent Technologies, Inc.

      Call      5/19/17      USD        52.50        65        (12,838 ) 

Alkermes PLC

      Call      5/19/17      USD        65.00        49        (6,248 ) 

Allergan PLC

      Call      5/19/17      USD        250.00        63        (23,310 ) 

Alnylam Pharmaceuticals, Inc.

      Call      5/19/17      USD        60.00        19        (2,612 ) 

Anthem, Inc.

      Call      5/19/17      USD        170.00        29        (10,512 ) 

Biogen, Inc.

      Call      5/19/17      USD        275.00        24        (26,040 ) 

Boston Scientific Corp.

      Call      5/19/17      USD        25.00        83        (6,765 ) 

Dermira, Inc.

      Call      5/19/17      USD        35.00        77        (20,020 ) 

Eli Lilly & Co.

      Call      5/19/17      USD        85.00        8        (1,436 ) 

Hologic, Inc.

      Call      5/19/17      USD        43.00        140        (17,850 ) 

Humana, Inc.

      Call      5/19/17      USD        210.00        14        (8,120 ) 

Johnson & Johnson

      Call      5/19/17      USD        121.05        108        (43,587 ) 

 

 

4         MARCH 31, 2017     

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)  

 

Description    Put/
Call		      Expiration
Date		     

Strike

Price

      Contracts      Value  

Medtronic PLC

      Call        5/19/17        USD        82.50        125      $ (10,125 ) 

Merck & Co., Inc.

      Call        5/19/17        USD        67.50        91        (3,049 ) 

Pacira Pharmaceuticals, Inc.

      Call        5/19/17        USD        50.00        9        (1,868 ) 

Pfizer, Inc.

      Call        5/19/17        USD        35.00        147        (4,851 ) 

Quest Diagnostics, Inc.

      Call        5/19/17        USD        100.00        97        (13,095 ) 

Sage Therapeutics, Inc.

      Call        5/19/17        USD        70.00        55        (76,450 ) 

Ultragenyx Pharmaceutical, Inc.

      Call        5/19/17        USD        75.00        29        (8,990 ) 

UnitedHealth Group, Inc.

      Call        5/19/17        USD        170.00        3        (543 ) 

Vertex Pharmaceuticals, Inc.

      Call        5/19/17        USD        110.00        21        (12,180 ) 

Eli Lilly & Co.

      Call        6/02/17        USD        84.75        87        (17,965 ) 

Quest Diagnostics, Inc.

      Call        6/06/17        USD        98.37        97        (23,183 ) 

HealthEquity, Inc.

      Call        6/16/17        USD        50.00        43        (3,010 ) 

Thermo Fisher Scientific, Inc.

      Call        6/16/17        USD        160.00        42        (9,555 ) 

Total

                   $ (1,779,938 ) 
                 

 

 

  

 

OTC Options Written

                     
Description    Put/
Call		      Counterparty      Expiration
Date		     

Strike

Price

      Contracts      Value  

AstraZeneca PLC

      Call        Morgan Stanley & Co. International PLC        4/07/17        GBP        46.50        13,600      $ (44,716 ) 

Boston Scientific Corp.

      Call        UBS AG        4/20/17        USD        25.22        28,700        (6,414 ) 

GlaxoSmithKline PLC

      Call        Deutsche Bank AG        4/25/17        GBP        17.05        22,500        (2,154 ) 

Merck KGaA

      Call        Deutsche Bank AG        4/26/17        EUR        103.98        7,900        (31,322 ) 

Centene Corp.

      Call        Citibank N.A.        4/27/17        USD        69.15        12,400        (40,082 ) 

Baxter International, Inc.

      Call        Royal Bank of Canada        4/28/17        USD        51.25        18,400        (23,016 ) 

REGENXBIO, Inc.

      Call        Goldman Sachs International        4/28/17        USD        20.50        12,600        (12,618 ) 

Amedisys, Inc.

      Call        Deutsche Bank AG        5/01/17        USD        51.26        20,000        (34,891 ) 

AstraZeneca PLC

      Call        Morgan Stanley & Co. International PLC        5/05/17        GBP        50.09        5,000        (5,591 ) 

Boston Scientific Corp.

      Call        Barclays Bank PLC        5/10/17        USD        25.00        24,600        (17,946 ) 

Baxter International, Inc.

      Call        Royal Bank of Canada        5/12/17        USD        51.25        18,400        (25,149 ) 

Syndax Pharmaceuticals, Inc.

      Call        UBS AG        5/12/17        USD        13.78        18,400        (23,758 ) 

Stryker Corp.

      Call        Barclays Bank PLC        5/22/17        USD        131.75        11,400        (38,457 ) 

Service Corp. International

      Call        Barclays Bank PLC        5/24/17        USD        30.30        14,700        (19,913 ) 

Stryker Corp.

      Call        Barclays Bank PLC        6/12/17        USD        132.80        11,400        (40,882 ) 

Total

                      $ (366,909 ) 
                    

 

 

  

 

      Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •  

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its annual report.

 

 

          MARCH 31, 2017    5

Schedule of Investments (continued)      BlackRock Health Sciences Trust (BME)  

 

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1     Level 2     Level 3      Total  

Assets:

          

Investments:

          

Long-Term Investments:

          

Common Stocks:

          

Biotechnology

    $ 71,766,814       —     $ 1,455,733      $ 73,222,547  

Diversified Consumer Services

      1,296,960       —       —        1,296,960  

Health Care Equipment & Supplies

      65,042,613       —       —        65,042,613  

Health Care Providers & Services

      83,356,041       —       —        83,356,041  

Life Sciences Tools & Services

      5,827,411       —       —        5,827,411  

Pharmaceuticals

      55,506,360     $ 7,903,824       —        63,410,184  

Preferred Stocks

      —       —       545,164        545,164  

Rights

      —       —       141,355        141,355  

Short-Term Securities

      5,850,857       —       —        5,850,857  
  

 

 

  

Subtotal

    $ 288,647,056     $ 7,903,824     $ 2,142,252      $ 298,693,132  
  

 

 

  

1    See above Schedule of Investments for values in each industry.

          

    

                                  

Derivative Financial Instruments2

          

Liabilities:

          

Equity contracts

    $ (1,496,152 )    $ (650,695 )      —      $ (2,146,847 ) 
  

 

 

  

2    Derivative financial instruments are options written, which are shown at value.

 

          
During the period ended March 31, 2017, there were no transfers between levels.          

 

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

 

      Common
Stocks		      Preferred
Stocks		      Rights      Total  

Assets:

            

Opening Balance, as of December 31, 2016

    $ 1,452,303      $ 503,166      $ 68,517      $ 2,023,986  

Transfers into Level 3

      —        —        —        —  

Transfers out of Level 3

      —        —        —        —  

Accrued discounts/premiums

      —        —        —        —  

Net realized gain

      —        —        —        —  

Net change in unrealized appreciation/depreciation1

      3,430        41,998        72,838        118,266  

Purchases

      —        —        —        —  

Sales

      —        —        —        —  
  

 

 

  

Closing Balance, as of March 31, 2017

    $ 1,455,733      $ 545,164      $ 141,355      $ 2,142,252  
  

 

 

  

Net change in unrealized appreciation/depreciation on investments still held at March 31, 20171

    $ 3,430      $ 41,998      $ 72,838      $ 118,266  
  

 

 

  

 

1    Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at March 31, 2017 is generally due to investments no longer held or categorized as Level 3 at period end.

     

 

 

6         MARCH 31, 2017     

Item 2 –   Controls and Procedures
2(a) –   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3 –   Exhibits
  Certifications – Attached hereto

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.

 

BlackRock Health Sciences Trust
By:       /s/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Health Sciences Trust
Date:   May 23, 2017
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/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Health Sciences Trust
Date:   May 23, 2017
By:       /s/ Neal J. Andrews                
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Health Sciences Trust
Date:   May 23, 2017