By Jody Godoy (Reuters) -Private equity firm GTCR can move forward with its acquisition of medical device coatings maker Surmodics, a federal judge in Chicago ruled on Monday, rejecting the U.S. Federal Trade Commission’s bid to block the deal. The FTC effort to stop the deal in March was its first lawsuit to block a […]
Health
US judge rejects FTC’s bid to block private equity medical company deal
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By Jody Godoy
(Reuters) -Private equity firm GTCR can move forward with its acquisition of medical device coatings maker Surmodics, a federal judge in Chicago ruled on Monday, rejecting the U.S. Federal Trade Commission’s bid to block the deal.
The FTC effort to stop the deal in March was its first lawsuit to block a merger during President Donald Trump’s second term.
The FTC argued the deal eliminates competition between Surmodics and GTCR portfolio company Biocoat in the market for suppliers of hydrophilic coatings used to smooth surgical equipment and internal medical devices such as catheters.
The companies defended the deal, saying any concerns would be alleviated by a partial divestiture of Biocoat assets to Integer, a contract medical device manufacturer.
U.S. District Court Judge Jeffrey Cummings said at a hearing that the divestiture would address competition concerns, and found that the FTC failed to account for competitive pressure from customers’ in-house coating capabilities.
(Reporting by Jody Godoy in New York; Editing by Bill Berkrot)