The US Federal Trade Commission (FTC) has sued to block the acquisition of medical device coatings maker Surmodics by private equity firm GTCR, citing concerns that it would contribute to high healthcare costs. The deal would give the combined company more than 50% of the market for suppliers of hydrophilic coatings used in surgical and internal medical devices.
The FTC argues that the competition between Surmodics and Biocoat, a portfolio company of GTCR, has driven innovation and lowered prices for these products. However, Surmodics disagrees with the FTC’s decision, stating that it will defend the case in court and remains committed to completing the merger.
This is the first time the FTC has sought to block a merger under President Donald Trump’s administration, which has emphasized lowering consumer costs as a priority. The commission voted unanimously to block the merger, with Chairman Andrew Ferguson saying that it would harm competition and drive up healthcare prices.
The deal was widely seen as a test of the FTC’s commitment to antitrust enforcement in the healthcare industry.
Source: https://www.reuters.com/markets/deals/ftc-sues-block-private-equity-firms-deal-buy-medical-device-coatings-maker-2025-03-06