FTC Moves to Block Surmodics-GTCR Merger Over Healthcare Cost Concerns

The U.S. Federal Trade Commission (FTC) has filed a lawsuit to prevent medical device coatings maker Surmodics from merging with private equity firm GTCR, citing concerns over rising healthcare costs. The agency argues that the $410 million acquisition would grant the combined entity over 50% control of the hydrophilic coatings market, which is essential for medical devices like catheters.

According to the FTC, competition between Surmodics and GTCR-owned Biocoat has driven innovation and kept prices lower. Eliminating this rivalry, the agency warns, could lead to higher costs for healthcare providers and patients.

Surmodics pushed back against the FTC’s decision, stating it intends to fight the lawsuit and remains committed to finalizing the deal. GTCR has yet to comment on the case.

This marks the first merger challenge under the Trump administration’s FTC, which has prioritized consumer cost reduction. FTC Chairman Andrew Ferguson reiterated the agency’s commitment on social media platform X, stating that blocking the merger aligns with efforts to control healthcare expenses and protect market competition.

The Commission, currently evenly split between Republicans and Democrats, voted unanimously to oppose the deal. The lawsuit highlights the FTC’s intensified scrutiny of mergers that could stifle competition in the healthcare sector.