Today's Health Winners and Losers

Shares of DJ Orthopedics(DJO Quote) were among the best-performing health-related stocks Monday, climbing 19% after the medical-device maker agreed to buy orthopedic-device company Aircast for about $290 million in cash.

The deal, which could be completed by as early as March 30, is expected to be "highly accretive" to earnings some six to nine months following the close, DJ Orthopedics said. "The acquisition of the Aircast business will fit directly into the competencies of DJ Orthopedics and represents an important catalyst to our sales and earnings growth strategies on several fronts," DJ said in a statement.

Aircast had 2005 earnings before interest, taxes, depreciation and amortization of $24.4 million, with sales of about $96.8 million. Shares of DJ Orthopedics were trading up $5.60 to $35.28.

Encore Medical(ENMC Quote) rose 2% after the orthopedic-device maker posted in-line fourth-quarter earnings. The company earned $3.2 million, or 6 cents a share, on sales of $75 million. Analysts polled by Thomson First Call expected earnings of 6 cents a share and sales of $75.6 million. During the year-earlier quarter, the company posted earnings from continuing operations of $741,000, or 1 cent a share, on sales of $68.4 million. Shares were trading up 12 cents to $6.13.

Shares of Novavax(NVAX Quote) rose 9% after the drugmaker said it plans to sell 4.6 million shares of stock for $20 million to venture capital firms Kleiner Perkins Caufield & Byers and Prospect Venture Partners. Kleiner Perkins agreed to acquire $12.5 million worth of stock, while Prospect Venture Partners will buy the rest. Both firms agreed to not sell any shares for a minimum of 90 days, Novavax said in a statement.

Shares, which were sold at $4.35 apiece, were sold pursuant to an existing shelf registration statement. The proceeds will be used to fund general corporate purposes. Novavax shares were recently trading up 46 cents to $5.58.