The U.S. Federal Trade Commission filed a lawsuit on Thursday to halt the acquisition of medical device coatings manufacturer Surmodics by private equity company GTCR, citing concerns about increased healthcare expenses. The FTC stated that the merger would result in over 50% market share in hydrophilic coatings for surgical and medical devices like catheters. They emphasized that competition between Surmodics and GTCR's Biocoat has fostered innovation and price reductions. Surmodics expressed disagreement with the FTC's decision, asserting their commitment to completing the merger despite legal challenges. GTCR did not provide an immediate response.
This would be the first merger under President Donald Trump's administration that the FTC aims to prevent, aligning with the administration's goal of reducing consumer costs. FTC Chairman Andrew Ferguson highlighted on social media that the merger would inflate already high healthcare expenses. He emphasized the FTC's dedication to fostering competition in healthcare markets, driving down prices, and enhancing the well-being of Americans. The FTC, evenly split between Republican and Democratic members, unanimously voted to block the merger.