BIOCOAT

FTC Challenges $627M GTCR Acquisition of Surmodics Over Market Concentration Concerns

- The Federal Trade Commission has voted 4-0 to block private equity firm GTCR's $627 million acquisition of Surmodics, citing concerns that the merged entity would control over 50% of the outsourced hydrophilic coatings market. - GTCR already owns a majority stake in Biocoat, the second-largest provider of hydrophilic coatings, while Surmodics is the market leader, with the FTC arguing their merger would eliminate "fierce competition" that has driven innovation and price reductions. - Surmodics has expressed disagreement with the FTC's decision, stating the merger is "pro-competitive" and vowing to defend the case in court, while maintaining the deal would benefit shareholders, customers, and patients.