N-Q 1 a06-4305_1nq.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

 

 

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

OMB APPROVAL

 

OMB Number:    3235-0578
Expires:    May 31, 2007
Estimated average burden
hours per response........21.09

 

 

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-004889

 

 

H&Q Life Sciences Investors

(Exact name of registrant as specified in charter)

 

30 Rowes Wharf, Boston, MA

 

02110

(Address of principal executive offices)

 

(Zip code)

 

 

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

617-772-8500

 

 

Date of fiscal year end:

September 30

 

 

 

 

Date of reporting period:

12/31/2005

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-% (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b-15 under the Investment Company Act of 1940 (17CFR 270.3b1-5).  The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.

 


 

Item 1.  Schedule of Investments.

 


 

H&Q LIFE SCIENCES INVESTORS

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2005

(Unaudited)

 

SHARES

 

 

 

VALUE

 

 

 

CONVERTIBLE SECURITIES – 16.4% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred (Restricted) – 16.3%

 

 

 

 

 

 

 

 

 

 

 

Drug Discovery Technologies – 1.6%

 

 

 

1,587,302

 

Agilix Corporation Series B (a) (b)

 

$

380,952

 

250,000

 

Ceres, Inc. Series C (a)

 

1,500,000

 

18,296

 

Ceres, Inc. Series C-1 (a) (c)

 

109,776

 

174,200

 

Ceres, Inc. Series D (a) (c)

 

1,045,200

 

932,488

 

Galileo Pharmaceuticals, Inc. Series F-1 (a)

 

326,371

 

200,000

 

Zyomyx, Inc. Series A New (a)

 

20,000

 

200

 

Zyomyx, Inc. Series B New (a)

 

20

 

 

 

Emerging Biopharmaceuticals – 5.0%

 

 

 

744,921

 

Agensys, Inc. Series C (a)

 

2,200,201

 

1,724,138

 

Corus Pharma, Inc. Series C (a)

 

1,000,000

 

1,212,121

 

Raven biotechnologies, Inc. Series B (a)

 

1,006,060

 

1,872,772

 

Raven biotechnologies, Inc. Series C (a)

 

1,554,401

 

2,722,015

 

Raven biotechnologies, Inc. Series D (a)

 

800,000

 

1,415,385

 

TargeGen, Inc. Series C (a)

 

1,840,001

 

30,920

 

Therion Biologics Corporation Series A (a)

 

37,722

 

160,000

 

Therion Biologics Corporation Series B (a)

 

195,200

 

271,808

 

Therion Biologics Corporation Series C (a) (c)

 

331,606

 

22,224

 

Therion Biologics Corporation Series C-2 (a) (c)

 

27,113

 

28,991

 

Therion Biologics Corporation Sinking Fund (a)

 

290

 

1,400,000

 

Xanthus Life Sciences, Inc. Series B (a)

 

1,400,000

 

 

 

Healthcare Services – 3.6%

 

 

 

1,051,429

 

CardioNet, Inc. Series C (a)

 

3,680,001

 

322,168

 

CytoLogix Corporation Series A (a) (b)

 

265,789

 

151,420

 

CytoLogix Corporation Series B (a) (b) (c)

 

124,922

 

3,589,744

 

PHT Corporation Series D (a) (b)

 

2,800,000

 

802,996

 

PHT Corporation Series E (a) (b)

 

626,337

 

 

 

Medical Devices and Diagnostics – 6.1%

 

 

 

3,235,293

 

Concentric Medical, Inc. Series B (a) (b)

 

4,529,410

 

1,162,790

 

Concentric Medical, Inc. Series C (a) (b)

 

1,627,906

 

455,333

 

Concentric Medical, Inc. Series D (a) (b)

 

637,466

 

177,778

 

EPR, Inc. Series A (a)

 

1,778

 

2,446,016

 

Labcyte, Inc. Series C (a)

 

1,280,000

 

130,000

 

Masimo Corporation Series D (a)

 

1,430,000

 

1,088,436

 

OmniSonics Medical Technologies, Inc. Series B (a)

 

1,454,151

 

1,031,992

 

OmniSonics Medical Technologies, Inc. Series C (a)

 

1,200,000

 

43,478

 

TherOx, Inc. Series H (a)

 

165,217

 

99,646

 

TherOx, Inc. Series I (a) (c)

 

384,733

 

 

 

 

 

$

33,982,623

 

 

PRINCIPAL
AMOUNT

 

 

 

VALUE

 

 

 

Convertible Notes (Restricted) – 0.1%

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services – 0.1%

 

 

 

$

200,000

 

CardioNet, Inc. 8% Cvt. Note, due 2006 (c)

 

200,000

 

 

1


 

PRINCIPAL
AMOUNT

 

 

 

VALUE

 

 

 

CONVERTIBLE SECURITIES – continued

 

 

 

 

 

 

 

 

 

 

 

Convertible Notes (Restricted) – continued

 

 

 

 

 

 

 

 

 

 

 

Healthcare Services – continued

 

 

 

$

112,224

 

CytoLogix Corporation 6.75% Cvt. Note (b) (d)

 

$

112,224

 

 

 

 

 

312,224

 

 

 

TOTAL CONVERTIBLE SECURITIES 

(Cost $41,748,879)

 

$

34,294,847

 

 

SHARES

 

 

 

VALUE

 

 

 

COMMON STOCKS – 70.4%

 

 

 

 

 

 

 

 

 

 

 

Biopharmaceuticals – 17.9%

 

 

 

468,500

 

Bioenvision, Inc. (a)

 

3,059,305

 

159,672

 

Critical Therapeutics warrants

 

95,803

 

456,205

 

Critical Therapeutics, Inc. (a)

 

3,275,552

 

270,903

 

Cubist Pharmaceuticals, Inc. (a)

 

5,756,689

 

28,000

 

Curis, Inc. (a)

 

101,203

 

414,100

 

Encysive Pharmaceuticals Inc. (a)

 

3,267,249

 

40,607

 

Genzyme Corporation (a)

 

2,874,163

 

140,675

 

Gilead Sciences, Inc. (a)

 

7,403,725

 

400,950

 

Insmed Inc. (a)

 

789,872

 

396,809

 

Inspire Pharmaceuticals, Inc. (a)

 

2,015,790

 

93,810

 

MedImmune, Inc. (a)

 

3,285,226

 

108,240

 

Myriad Genetics, Inc. (a)

 

2,251,392

 

670,000

 

Point Therapeutics, Inc. (a)

 

2,311,500

 

312,200

 

Vivus, Inc. (a)

 

924,112

 

 

 

 

 

37,411,581

 

 

 

 

 

 

 

 

 

Drug Delivery – 2.9%

 

 

 

535,355

 

DepoMed, Inc. (a)

 

3,212,130

 

141,710

 

Noven Pharmaceuticals, Inc. (a)

 

2,144,072

 

37,816

 

Penwest Pharmaceuticals Co. (a)

 

738,169

 

 

 

 

 

6,094,371

 

 

 

 

 

 

 

 

 

Drug Discovery Technologies – 4.9%

 

 

 

46,560

 

Avalon Pharmaceuticals, Inc. (a)

 

209,520

 

138,288

 

Avalon Pharmaceuticals, Inc. (Restricted) (a)

 

497,837

 

376,232

 

deCODE Genetics, Inc. (a)

 

3,107,676

 

501,000

 

Pharmacopeia Drug Discovery, Inc. (a)

 

1,783,560

 

120,737

 

Senomyx, Inc. (a)

 

1,463,332

 

180,050

 

ZymoGenetics, Inc. (a)

 

3,062,651

 

200,000

 

Zyomyx, Inc. (Restricted) (a)

 

2,000

 

 

 

 

 

10,126,576

 

 

 

 

 

 

 

 

 

Emerging Biopharmaceuticals – 21.9%

 

 

 

277,235

 

ACADIA Pharmaceuticals, Inc. (a)

 

2,730,765

 

366,659

 

Ariad Pharmaceuticals, Inc. (a)

 

2,144,955

 

243,828

 

Barrier Therapeutics, Inc. (a)

 

1,999,390

 

 

2


 

SHARES

 

 

 

VALUE

 

 

 

COMMON STOCKS – continued

 

 

 

 

 

 

 

 

 

 

 

Emerging Biopharmaceuticals – continued

 

 

 

368,929

 

Cytokinetics, Inc. (a)

 

$

2,412,796

 

89,470

 

DOV Pharmaceutical, Inc. (a)

 

1,313,420

 

442,800

 

Epix Pharmaceuticals, Inc. (a)

 

1,788,912

 

328,380

 

Exelixis, Inc. (a)

 

3,093,340

 

378,130

 

Kosan Biosciences, Inc. (a)

 

1,678,897

 

965,000

 

Lexicon Genetics, Inc. (a)

 

3,522,250

 

31,059

 

Momenta Pharmaceuticals, Inc. (a)

 

684,540

 

41,707

 

Myogen, Inc. (a)

 

1,257,883

 

51,080

 

Myogen, Inc. warrants

 

1,142,149

 

158,810

 

Neurogen Corporation (a)

 

1,046,558

 

158,337

 

Nitromed, Inc. (a)

 

2,208,801

 

270,044

 

Nuvelo, Inc. (a)

 

2,190,057

 

153,300

 

Rigel Pharmaceuticals, Inc. (a)

 

1,281,588

 

595,700

 

Sangamo BioSciences, Inc. (a)

 

2,400,671

 

455,320

 

Seattle Genetics, Inc. (a)

 

2,149,110

 

526,924

 

Sirna Therapeutics, Inc. (a)

 

1,596,580

 

96,474

 

Telik, Inc. (a)

 

1,639,093

 

226,384

 

Tercica, Inc. (a)

 

1,623,173

 

259,216

 

Theravance, Inc. (a)

 

5,837,544

 

146,982

 

Therion Biologics Corporation (Restricted) (a)

 

1,470

 

 

 

 

 

45,743,942

 

 

 

 

 

 

 

 

 

Generic Pharmaceuticals – 5.3%

 

 

 

305,100

 

Caraco Pharmaceutical Laboratories, Ltd. (a)

 

2,739,798

 

404,082

 

Impax Laboratories, Inc. (a)

 

4,323,677

 

48,300

 

IVAX Corporation (a)

 

1,513,239

 

55,370

 

Teva Pharmaceutical Industries, Ltd. ADR

 

2,381,464

 

 

 

 

 

10,958,178

 

 

 

 

 

 

 

 

 

Healthcare Services – 2.8%

 

 

 

148,148

 

Aveta, Inc. (Restricted) (a)

 

1,999,998

 

17,416

 

Dako A/S (Restricted) (e)

 

181,301

 

233,705

 

Emageon, Inc. (a)

 

3,715,909

 

204,139

 

Syntiro Healthcare Services (Restricted) (a)

 

204

 

 

 

 

 

5,897,412

 

 

 

 

 

 

 

 

 

Medical Devices and Diagnostics – 14.7%

 

 

 

76,545

 

Adeza Biomedical Corporation (a)

 

1,611,272

 

74,250

 

Affymetrix, Inc. (a)

 

3,545,437

 

458,850

 

Align Technology, Inc. (a)

 

2,968,760

 

391,917

 

Conor Medsystems, Inc. (a)

 

7,583,594

 

58,800

 

Conor Medsystems, Inc. (Restricted) (a)

 

1,080,891

 

65,820

 

IDEXX Laboratories, Inc. (a)

 

4,737,724

 

130,000

 

Masimo Corporation (Restricted) (a)

 

1,300

 

195,217

 

Orchid Cellmark, Inc. (a)

 

1,483,649

 

784,900

 

Orthovita, Inc. (a)

 

3,045,412

 

139,019

 

Songbird Hearing, Inc. (Restricted) (a)

 

1,390

 

499,050

 

Third Wave Technologies, Inc. (a)

 

1,487,169

 

 

3


 

SHARES

 

 

 

VALUE

 

 

 

COMMON STOCKS – continued

 

 

 

 

 

 

 

 

 

 

 

Medical Devices and Diagnostics – continued

 

 

 

382,583

 

VNUS Medical Technologies, Inc. (a)

 

$

3,206,046

 

 

 

 

 

30,752,644

 

 

 

 

 

 

 

 

 

TOTAL COMMON STOCKS
(Cost $123,856,446)

 

$

146,984,704

 

 

PRINCIPAL
AMOUNT

 

 

 

VALUE

 

 

 

SHORT-TERM INVESTMENTS – 14.6%

 

 

 

 

 

 

 

 

 

$

12,400,000

 

American Express Credit Corp.; 3.50% due 01/05/06

 

12,395,178

 

13,000,000

 

General Electric Capital Corp.; 4.23% – 4.28%, due 1/3/06 – 1/6/06

 

12,994,786

 

5,000,000

 

Wisconsin Public Services Corp.; 4.36% due 1/10/06

 

4,994,550

 

 

 

Total SHORT-TERM INVESTMENTS
(Cost $30,384,514)

 

$

30,384,514

 

 

 

TOTAL INVESTMENTS – (101%)
(Cost $195,989,839)

 

$

211,664,065

 

 

 

OTHER LIABILITIES IN EXCESS OF ASSETS - (-1%)

 

$

(2,997,831

)

 

 

NET ASSETS – 100%

 

$

208,666,234

 

 

4


 

(a)                                  Non-income producing security.

(b)                                 Affiliated issuers in which the Fund holds 5% or more of the voting securities (Total Market Value of $11,105,006).

(c)                                  Including associated warrants.

(d)                                 Variable maturity.

(e)                                  Foreign Security.

ADR                     American Depository Receipt.

 

Investment Securities Valuation - Investments traded on national securities exchanges or in the over-the-counter market that are National Market System securities are valued at the last sale price or, lacking any sales, at the mean between the last bid and asked prices.  Other over-the-counter securities are valued at the most recent bid prices as obtained from one or more dealers that make markets in the securities.   Exchange traded investments for which market quotations are not readily available are valued at fair value as determined in good faith by the Trustees of the Fund.  The value of venture capital and other restricted securities is determined in good faith by the Trustees. However, because of the uncertainty of venture capital and other restricted security valuations, these estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material. Short-term investments with maturity of 60 days or less are valued at amortized cost.

 

Federal Income Tax Cost- At December 31, 2005, the total cost of securities of Federal income tax purposed was $195,989,839. The net unrealized gain on securities held by the Fund was $15,674,227, including gross unrealized gain of $45,113,202 and gross unrealized loss of $29,438,975.

 

Affiliate Transactions – An affiliate issuer is a company in which the Fund holds 5% or more of the voting securities.  Transactions with such companies during the three months ended December 31, 2005 were as follows:

 

Issuer

 

Value on
October 1,
2005

 

Purchases

 

Sales

 

Income

 

Value on
December 31,
2005

 

Agilix Corporation

 

$

380, 952

 

$

—

 

$

—

 

$

—

 

$

380,952

 

Concentric Medical, Inc.

 

6,794,782

 

—

 

—

 

—

 

6,794,782

 

CytoLogix Corporation

 

502,935

 

—

 

—

 

—

 

502,935

 

PHT Corporation

 

3,426,337

 

—

 

—

 

—

 

3,426,337

 

 

 

$

11,105,006

 

$

—

 

$

—

 

$

—

 

$

11,105,006

 

 

Venture Capital and Other Restriced Securities – The following table details the acquisition date, cost, carrying value per unit, and value of the Fund’s venture capital and other restricted securities at December 31, 2005, as determined by the Trustees of the Fund.  The Fund may invest in venture capital and other restricted securities if these securities would currently comprise 40% or less of net assets.  The value of these securities represent 18% of the Fund’s net assets at December 31, 2005. With the exception of Conor Medsystems, Inc. Restricted Common the Fund on its own does not have the right to demand that such securities be registered. Subject to certain conditions the Fund has the right to request registration of Conor Medsystems, Inc. Restricted Common.

 

 

 

 

 

 

 

Carrying

 

 

 

 

 

Acquisition

 

 

 

Value

 

 

 

Security (f)

 

Date

 

Cost

 

per Unit

 

Value

 

Agensys, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

2/14/02, 9/27/05

 

$

2,204,684

 

$

2.95

 

$

2,200,201

 

Agilix Corporation

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

11/8/01

 

2,009,507

 

0.24

 

380,952

 

Avalon Pharmaceuticals, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

10/22/01-2/11/05

 

2,145,319

 

3.60

 

497,837

 

Aveta, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

12/21/05

 

1,999,998

 

13.50

 

1,999,998

 

CardioNet, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

5/3/01 - 3/25/03

 

3,700,899

 

3.50

 

3,680,001

 

Convertible Note

 

8/14/05

 

200,000

 

1.00

 

200,000

 

Ceres, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

12/23/98

 

1,000,875

 

6.00

 

1,500,000

 

Series C-1 Cvt. Pfd.

 

3/31/01

 

74,325

 

6.00

 

109,776

 

Series D Cvt. Pfd.

 

3/14/01

 

1,046,778

 

6.00

 

1,045,200

 

Concentric Medical, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

5/7/02 - 1/24/03

 

2,219,473

 

1.40

 

4,529,410

 

Series C Cvt. Pfd.

 

12/19/03

 

999,999

 

1.40

 

1,627,906

 

Series D Cvt. Pfd.

 

9/30/05

 

638,511

 

1.40

 

637,466

 

Conor Medsystems, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

10/23/03-8/6/04

 

351,643

 

18.38

 

1,080,891

 

Corus Pharma, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

4/8/04

 

2,001,540

 

0.58

 

1,000,000

 

CytoLogix Corporation

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

1/13/98-7/21/99

 

1,077,912

 

0.83

 

265,789

 

Series B Cvt. Pfd.

 

1/11/01

 

506,622

 

0.83

 

124,922

 

Convertible Note

 

5/29/02

 

112,224

 

1.00

 

112,224

 

Dako A/S (g)

 

 

 

 

 

 

 

 

 

Restricted Common

 

6/14/04

 

734,913

 

10.41

 

181,301

 

EPR, Inc.

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

3/9/94

 

800,331

 

0.01

 

1,778

 

Galileo Pharmaceuticals, Inc.

 

 

 

 

 

 

 

 

 

Series F-1 Cvt. Pfd.

 

8/18/00

 

2,001,929

 

0.35

 

326,371

 

Labcyte, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

7/18/05

 

1,282,337

 

0.52

 

1,280,000

 

Masimo Corporation

 

 

 

 

 

 

 

 

 

Series D Cvt. Pfd.

 

8/14/96

 

910,176

 

11.00

 

1,430,000

 

Restricted Common

 

3/31/98

 

0

 

0.01

 

1,300

 

Omnisonics Medical Technologies, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

5/24/01

 

1,606,312

 

1.34

 

1,454,151

 

Series C Cvt. Pfd.

 

10/1/03

 

1,200,224

 

1.16

 

1,200,000

 

PHT Corporation

 

 

 

 

 

 

 

 

 

Series D Cvt. Pfd.

 

7/23/01

 

2,803,841

 

0.78

 

2,800,000

 

Series E Cvt. Pfd.

 

9/12/03-12/17/03

 

627,472

 

0.78

 

626,337

 

Raven biotechnologies, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

12/12/00

 

2,001,150

 

0.83

 

1,006,060

 

Series C Cvt. Pfd.

 

11/26/02

 

1,554,400

 

0.83

 

1,554,401

 

Series D Cvt. Pfd.

 

6/23/05

 

803,610

 

0.29

 

800,000

 

 


 

 

 

 

 

 

 

Carrying

 

 

 

 

 

Acquisition

 

 

 

Value

 

 

 

Security(f)

 

Date

 

Cost

 

per Unit

 

Value

 

Songbird Hearing, Inc.

 

 

 

 

 

 

 

 

 

Restricted Common

 

12/14/00

 

2,003,239

 

0.01

 

1,390

 

Syntiro Heathcare Services

 

 

 

 

 

 

 

 

 

Restricted Common

 

2/5/97

 

800,325

 

0.001

 

204

 

TargeGen, Inc.

 

 

 

 

 

 

 

 

 

Series C Cvt. Pfd.

 

8/30/05

 

1,842,205

 

1.30

 

1,840,001

 

Therion Biologics Corporation

 

 

 

 

 

 

 

 

 

Series A Cvt. Pfd.

 

8/20/96-10/16/96

 

289,847

 

1.22

 

37,722

 

Series B Cvt. Pfd.

 

6/22/99

 

600,929

 

1.22

 

195,200

 

Series C Cvt. Pfd.

 

9/26/01-10/15/01

 

1,019,568

 

1.22

 

331,606

 

Series C-2 Cvt. Pfd.

 

8/13/03

 

40,003

 

1.22

 

27,113

 

Sinking Fund Cvt. Pfd.

 

10/18/94-4/3/96

 

582,505

 

0.01

 

290

 

Restricted Common

 

6/30/93

 

251,642

 

0.01

 

1,470

 

TherOx, Inc.

 

 

 

 

 

 

 

 

 

Series H Cvt. Pfd.

 

9/11/00

 

2,001,626

 

3.80

 

165,217

 

Series I Cvt. Pfd.

 

7/8/05

 

386,273

 

3.86

 

384,733

 

Xanthus Life Sciences, Inc.

 

 

 

 

 

 

 

 

 

Series B Cvt. Pfd.

 

12/5/03

 

1,400,880

 

1.00

 

1,400,000

 

Zyomyx, Inc.

 

 

 

 

 

 

 

 

 

Series A New Cvt. Pfd.

 

2/19/99-1/12/04

 

199,800

 

0.10

 

20,000

 

Series B New Cvt. Pfd.

 

3/31/04

 

112

 

0.10

 

20

 

New Restricted Common

 

2/19/99-7/22/02

 

2,401,101

 

0.01

 

2,000

 

 

 

 

 

$

 52,437,059

 

 

 

$

38,061,238

(h)

 

(f) See Schedule of Investments and corresponding footnotes for more information on each issuer.

(g) Foreign security

(h) Represents 18% of the Fund’s net assets as of December 31, 2005.

 


 

Item 2.  Controls and Procedures.

 

(a.)          The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is (i) accumulated and communicated to the investment company’s management, including its certifying officers, to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(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 has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)).  Filed herewith.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities and 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.

 

(Registrant)

H&Q Life Sciences Investors

 

 

By (Signature and Title)

 

/s/ Daniel Omstead

 

 

Daniel Omstead, President

 

 

Date

 February 28, 2006

 

Pursuant to the requirements of the Securities and 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 (Signature and Title)*

/s/ Kathleen Eckert

 

 

Kathleen Eckert, Treasurer

 

 

Date

 February 28, 2006