March 6 (Reuters) - The U.S. Federal Trade Commission

sued on Thursday to block medical device coatings maker

Surmodics' ( SRDX ) acquisition by private equity firm GTCR,

saying the deal would contribute to high healthcare costs.

The FTC said the deal would give the combined company more

than 50% of the market for suppliers of hydrophilic coatings

used to smooth surgical and internal medical devices such as

catheters.

The competition between Surmodics ( SRDX ) and GTCR portfolio company

Biocoat has driven innovation and lowered prices for the

product, the FTC said.

Surmodics ( SRDX ) in a statement on Thursday disagreed with the

FTC's decision. It said it would defend the case in court and

that it remains committed to completing the merger.

GTCR did not immediately respond to requests for comment.

The merger is the first the FTC has sought to block

under President Donald Trump's administration, which has said

lowering consumer costs is a priority.

FTC Chairman Andrew Ferguson said on social media site X

that the merger would have contributed to already high

healthcare costs.

"The Trump-Vance FTC will work every day to protect

competition in our healthcare markets, to drive down healthcare

prices, and to improve the lives of all Americans," he said.

The Commission, which is currently split evenly between

Republican and Democratic members, voted unanimously to block

the merger.