Surmodics said the United States District Court for the Northern District of Illinois has denied a request by the FTC and certain state regulators to block the company and GTCR from going forward with a proposed merger.
The FTC, along with Illinois and Minnesota, have argued that the $627 million deal would create a combined company controlling more than 50% of the market for outsourced hydrophilic coatings, which are used to produce medical devices such as catheters and guidewires.
“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...the FTC is stepping in to protect patients from this unlawful acquisition.”
Surmodics called the District Court’s ruling is a "significant step" toward closing the deal.
“I would like to extend a heartfelt thanks to our legal advisors for their hard work in helping Surmodics to defend this proposed transaction in court, and to our employees for their unwavering dedication to maintaining our excellent operating performance," said Gary Maharaj, President and CEO of Surmodics, in a statement.
The merger is still subject to a temporary restraining order preventing it from closing before Monday, November 17.
