The Federal Trade Commission (FTC) has sued to block GTCR BC Holdings, LLC’s acquisition of Surmodics, Inc., citing anticompetitive concerns. The proposed deal would create a combined company controlling over 50% of the market for outsourced hydrophilic coatings, used in life-saving medical devices such as catheters and guidewires.
The FTC alleges that GTCR’s acquisition of Surmodics would disrupt competitive dynamics that have benefited patients. Surmodics is currently the largest provider of outsourced hydrophilic coatings, while GTCR already owns a majority stake in Biocoat, Inc., which is the second-largest provider.
The merger would eliminate significant head-to-head competition between the two companies and lead to higher prices, lower quality coatings, and reduced innovation. Hydrophilic coatings allow physicians to maneuver medical devices within the body without damaging sensitive tissue or vital structures.
The FTC’s complaint states that the proposed deal would result in a highly concentrated market for outsourced hydrophilic coatings, violating the 2023 Merger Guidelines. The agency also cites internal documents from both companies and competitor testimony as evidence of the competitive dynamics between Surmodics and Biocoat.
The Commission vote to issue an administrative complaint was unanimous, with Commissioner Rebecca Kelly Slaughter’s statement forthcoming. The federal court complaint will be filed in the U.S. District Court for the Northern District of Illinois to halt the transaction pending an administrative proceeding.
Source: https://www.ftc.gov/news-events/news/press-releases/2025/03/ftc-challenges-medical-device-coatings-deal