WASHINGTON, D.C. — The Federal Trade Commission (FTC) has filed an amended complaint in its ongoing lawsuit challenging GTCR BC Holdings, LLC’s proposed acquisition of Surmodics, Inc. The states of Illinois and Minnesota have joined the FTC as co-plaintiffs, and GTCR, LLC has been added as a defendant in the case.
The FTC alleges that the $1.75 billion acquisition would establish a dominant player in the market for outsourced hydrophilic coatings, which are crucial for manufacturing medical devices like catheters and guidewires. According to the complaint, Surmodics is the leading provider of such coatings, while GTCR holds a majority stake in Biocoat, Inc., the second-largest competitor. The agency argues the merger would eliminate direct competition, resulting in higher prices, reduced innovation, and diminished quality.
“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,” the complaint states. The FTC contends that such consolidation would harm device manufacturers and patients reliant on affordable and reliable medical tools.
The amended complaint was filed on April 17 in the U.S. District Court for the Northern District of Illinois. The FTC’s decision to amend the filing was supported by a unanimous 3-0 vote from the Commission.
This legal development intensifies the scrutiny surrounding GTCR’s acquisition efforts. The case serves as a pivotal examination of antitrust regulations in healthcare markets. Looking ahead, the amended complaint signals a continued commitment by the FTC and its state partners to safeguarding competition and innovation in lifesaving medical technologies.
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