Adding his name to a legal fight against the potential consequences of healthcare monopolization, Illinois Attorney General Kwame Raoul has put his weight behind the Federal Trade Commission's effort to block a significant medical sector merger. Raoul, joined by Minnesota's AG Keith Ellison, has pitched into the FTC lawsuit seeking to stop GTCR BC Holdings LLC's (GTCR) bid to acquire Surmodics Inc., as reported by the Office of the Illinois Attorney General. The deal in question involves two giants in medical device coatings, a move Raoul claims would stymie competition and hurt patients.
According to a statement from his office, Raoul fears this acquisition, placed under the microscope, would see a combined company with control over more than 50% of the outsourced hydrophilic coatings market. These coatings—lifesaving troopers that play critical roles in medical devices such as catheters and guidewires—could see their market dynamism deflated, leading to price spikes and stalled innovation.
In their lawsuit, the state AGs hitch their wagon to the FTC's contention that this merger could crank up prices for medical device manufacturers and, subsequently, for the patients who rely on these technologies. Currently, the fierce competition between GTCR and Surmodics has been instrumental in driving down costs and spurring quality and innovation. Raoul articulated this sentiment, stating, "The proposed acquisition of Surmodics by a private equity firm represents a troubling trend of wealthy investors attempting to limit competition and innovation in a market while extracting advantages that come from eliminating competitors," as stated by the Office of the Illinois Attorney General.
Furthermore, Raoul's lawsuit—filed indeed in the Northern District of Illinois—asks for a temporary restraining order and a preliminary injunction. The aim is to hold GTCR and Surmodics in check from sealing the deal before a full hearing can thoroughly judge the proposed acquisition's merits.
