Regulators say the acquisition would reduce competition, impacting patients and innovation.
The Federal Trade Commission (FTC) has filed a lawsuit to stop GTCR BC Holdings’ (GTCR) acquisition of Surmodics, claiming the deal would reduce competition in the market for hydrophilic coatings used in medical devices like catheters and guidewires. The merger would combine the two largest providers, giving GTCR control of over half the market, potentially reducing innovation, raising costs, and lowering product quality.
“Medical device makers rely on high-quality coatings in designing and bringing to market life-saving devices, such as neurovascular catheters,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “This merger threatens to disrupt competitive dynamics that have ultimately benefited patients. Today, the FTC is stepping in to protect patients from this unlawful acquisition.”
According to the FTC, as competitors, Biocoat (owned by GTCR) and Surmodics have driven improvements through innovation and pricing. The agency stated that combining these companies would eliminate the rivalry, negatively impacting medical device manufacturers and the patients they serve.
As the Lord Leads, Pray with Us…
- For Director Guarnera as he oversees the FTC’s Bureau of Competition.
- For Chair Andrew Ferguson to be discerning as he heads the Federal Trade Commission.
Sources: Federal Trade Commission
