Biotech companies tied up deals and wrapped up the pre-holiday week with a flat-to-green Friday for health indices.

Dutch company

Royal Philips Electronics

(PHG) - Get Report

said Thursday that it would acquire

Respironics

( RESP) for about $5.1 billion, launching the smaller company's shares $12.21, or 23%, to $65.30.

Philips will pay $66 a share for the sleep-disorder treatment company, which represents a 25% premium over the stock's Thursday closing price. The deal, which will fold Respironics into Philips healthcare unit, is expected to close in the first quarter. Philips was trading down $1, or 2.2%, at $43.16. Earlier in the week the company announced a $7.2 billion buyback of its stock.

Two other companies wrapped up previously announced deals. Valve company

Edwards Lifesciences

(EW) - Get Report

, said Friday that it completed its acquisition of certain assets of the CardioVations division of Ethicon, including the Port Access products for cardiac valve procedures. Edwards has said it expects CardioVations' product line to generate sales of more than $20 million in 2008. The company said it anticipates it won't have an impact on earnings in 2008 and will be accretive thereafter.

Inverness Medical Innovations

( IMA) said Friday that it completed its previously announced $230 million acquisition of ParadigmHealth, which provides decision support technologies and coaching for health choices for acutely ill and clinically complex patients, including neonatal intensive care and oncology patients. Shares were up $1.01, or 1.9%, at $54.98.

Elsewhere, the Food and Drug Administration cleared specialty pharmaceutical company

Akorn's

(AKRX) - Get Report

Decatur, Ill. manufacturing facility after a compliance inspection. The company said that as a result of the inspection, it's now eligible for pending product approvals in its ophthalmic, ampoule, liquid vial and lyophilization production filling suites at the Decatur location. Shares rose 59 cents, or 9.4%, to $7.24. The stock helped prop up the NASDAQ biotechnology index, which was up just 6.86, or 0.81%, at 851.78.

And

Palomar Medical Technologies

( PMTI) said Friday that it has extended its deadline for a new agreement with Gillette, a

Procter & Gamble

(PG) - Get Report

unit, regarding a light-based hair removal device for women until no later than February 29. The companies have agreed to enter into negotiations for a new agreement to replace the existing one, but noted that there was no assurance of a new definitive agreement. They warned that if the parties do not agree, the existing agreement could be terminated. Shares slid $1.64, or 8.4%, to $17.99