Monday's Health Winners & Losers

Shares of Laserscope(LSCP) were among the best-performing health-related stocks Monday, soaring 43% after the medical-device company agreed to be acquired by American Medical Systems(AMMD) for about $715 million.

The deal values Laserscope at $31 a share, representing a 45% premium over Friday's closing price of $21.41. The all-cash deal is expected to close during the third quarter. "With over thirty years' experience in delivering pelvic health solutions to urologists, the global reach of the combined AMS/Laserscope sales force will be uniquely positioned to capitalize on Laserscope's technology and market position," the companies said in a press release. The acquisition is expected to be accretive to American Medical's earnings beginning in 2008. Shares of Laserscope recently were trading up $9.11 to $30.52, while shares of American Medical Systems fell $3.27, or 16%, to $17.23.

Cutera(CUTR) vaulted 34% after the maker of lasers and other light-based aesthetic systems agreed to settle a four-year-old patent-infringement suit with Palomar Medical Technologies(PMTI) that will allow Cutera to continue selling its products. Cutera admitted to the infringement and agreed to pay $15.5 million in royalties, $2.5 million in interest on past sales and $4 million to cover Palomar's legal costs. The settlement covers the time period from 2000 to the first quarter of 2006. As of April 1, meanwhile, Cutera will pay a 7.5% royalty on future sales of systems and any new light-based hair-removal systems that are developed in the future. Shares of Cutera were trading up $6.46 to $25.24, while shares of Palomar Medical were down $2 to $45.

Shares of Sepracor(SEPR) fell 4% after the pharmaceutical company said the Securities and Exchange Commission is looking into its stock-option practices. The letter of inquiry seeks documents related to the company's stock-option grants and practices, Sepracor said. The company, which has set up a committee to oversee the review, said it will cooperate with the SEC. Shares were trading at $49.07, down $2.13.