Surmodics Responds to FTC’s Decision to Challenge the Proposed Acquisition
EDEN PRAIRIE, Minn. – Surmodics, Inc., a leading provider of medical device and in vitro diagnostic technologies to the healthcare industry, has issued the following statement in response to the U.S. Federal Trade Commission’s (FTC) announcement that it will challenge the proposed acquisition of Surmodics by funds affiliated with GTCR LLC:
“Surmodics is disappointed with the FTC’s decision to challenge the proposed acquisition of Surmodics by funds affiliated with GTCR. We have been working collaboratively with the FTC throughout the review process and are surprised by this turn of events. We believe that the combination of Surmodics and Biocoat will create a leading provider of medical device and in vitro diagnostic technologies, with a comprehensive portfolio of products and services that will benefit our customers and drive innovation in the healthcare industry. We remain committed to working with the FTC to address any concerns they may have and to completing the transaction as soon as possible.”
What Does This Mean for Surmodics Shareholders?
The FTC’s decision to challenge the acquisition of Surmodics by GTCR could have significant implications for Surmodics shareholders. The challenge could result in a delay or even the termination of the transaction, which could negatively impact Surmodics’ stock price.
- Delayed Transaction: The FTC’s challenge could result in a delay in the completion of the transaction. Surmodics and GTCR may need to provide additional information to the FTC to address any concerns they have, which could take several months.
- Termination of the Transaction: If the FTC determines that the acquisition would violate antitrust laws, the transaction could be terminated.
- Impact on Surmodics Stock Price: The uncertainty surrounding the transaction could negatively impact Surmodics’ stock price, as investors may become more risk-averse.
What Does This Mean for the Healthcare Industry?
The FTC’s challenge to the acquisition of Surmodics by GTCR could also have implications for the healthcare industry as a whole. The combination of Surmodics and Biocoat would have created a leading provider of medical device and in vitro diagnostic technologies, which could have driven innovation and competition in the industry.
- Impact on Competition: The FTC’s challenge could reduce competition in the medical device and in vitro diagnostic industries, as the acquisition of Surmodics by GTCR would have created a larger player in the market.
- Impact on Innovation: The acquisition of Surmodics by GTCR could have led to increased investment in research and development, which could have resulted in new and innovative medical devices and diagnostic tests.
- Impact on Patients: The FTC’s challenge could delay the availability of new medical devices and diagnostic tests, which could negatively impact patient care.
Conclusion
The FTC’s decision to challenge the acquisition of Surmodics by GTCR has significant implications for Surmodics shareholders and the healthcare industry as a whole. The challenge could result in a delay or even the termination of the transaction, which could negatively impact Surmodics’ stock price. Additionally, the challenge could reduce competition in the medical device and in vitro diagnostic industries and delay the availability of new medical devices and diagnostic tests, which could negatively impact patient care. Surmodics remains committed to working with the FTC to address any concerns they may have and to completing the transaction as soon as possible.
“We are committed to working with the FTC to address any concerns they may have and to completing the transaction as soon as possible. We believe that the combination of Surmodics and Biocoat will create a leading provider of medical device and in vitro diagnostic technologies, with a comprehensive portfolio of products and services that will benefit our customers and drive innovation in the healthcare industry.”
