The Federal Trade Commission (FTC) has filed a lawsuit to block the acquisition of Surmodics, Inc. by GTCR BC Holdings, LLC, citing anticompetitive concerns. The deal would combine the two largest manufacturers of hydrophilic coatings, which are critical for medical devices such as catheters and guidewires. According to the FTC, the merger would create a company controlling over 50% of the outsourced hydrophilic coatings market, reducing competition and harming patients and medical device manufacturers.
Hydrophilic coatings are essential for minimally invasive procedures, allowing devices to navigate delicate areas of the body without causing damage. The FTC argues that the merger would eliminate head-to-head competition between GTCR-owned Biocoat and Surmodics, leading to higher prices, lower quality, and reduced innovation. Internal documents and market testimony confirm that the two companies are direct competitors, driving advancements in coating technology.
The specialized nature of hydrophilic coatings, requiring significant expertise and investment, makes it unlikely for new competitors to emerge post-merger. The FTC’s administrative complaint was approved unanimously, with a federal court filing in the Northern District of Illinois seeking to halt the transaction pending further review.
— news from Federal Trade Commission News