The Federal Trade Commission filed an amended complaint adding the states of Illinois and Minnesota as co-plaintiffs in the Commission’s lawsuit challenging GTCR's $627 million acquisition of Surmodics.
The FTC’s ongoing lawsuit alleges that GTCR’s acquisition of Surmodics would create a combined company controlling more than 50% of the market for outsourced hydrophilic coatings, which are used to produce lifesaving medical devices such as catheters and guidewires.
The complaint alleges:
- Surmodics is the largest provider of outsourced hydrophilic coatings and GTCR owns a majority stake in Biocoat, Inc., the second-largest provider of outsourced hydrophilic coatings.
- GTCR’s acquisition of Surmodics would eliminate direct competition.
- The existing competition has resulted in lower prices, higher quality coatings, and product innovation, which has benefitted both medical device manufacturers and patients.
Surmodics last month said that it intends to vigorously defend this case in court in order to complete the merger.
“Surmodics respectfully disagrees with the FTC's decision and remains committed to completing the Merger. Surmodics remains confident in both its rationale for the Merger and the value it will bring to all stakeholders, including shareholders, customers and patients. We have worked constructively with the FTC over the last several months to secure regulatory approval for the Merger and are disappointed by its decision to initiate litigation, as the Merger is pro-competitive," the company said in a statement.
