The Federal Trade Commission (FTC) has filed a lawsuit to block private equity firm GTCR’s acquisition of Surmodics, alleging the deal would harm competition in the critical market for outsourced hydrophilic coatings used in medical devices.
GTCR, which owns Biocoat — the second-largest provider of these coatings — is seeking to acquire Surmodics, the market leader. The FTC argues the merger would give the combined company control over more than 50% of the market, reducing competition, raising prices, and slowing innovation in coatings essential for life-saving devices like catheters and guidewires.
The FTC warns that the deal would create a highly concentrated market, violating the 2023 Merger Guidelines, and harm both medical device manufacturers and patients. The agency has requested a temporary restraining order and preliminary injunction to halt the deal while administrative proceedings take place.
The FTC’s unanimous 4-0 vote underscores its strong stance against anti-competitive mergers that threaten healthcare innovation and patient care.
