Surmodics Inc. (NASDAQ:SRDX) shares soared 50% on Tuesday after a U.S. District Court denied the Federal Trade Commission’s (FTC) motion for a preliminary injunction that sought to halt the company’s pending acquisition by GTCR LLC.
The ruling from the Northern District of Illinois removes a major obstacle to the merger, though the deal remains subject to a Temporary Restraining Order (TRO) that prevents its completion before 5:00 p.m. Central Time on Monday, November 17. Surmodics noted that several closing conditions must still be met, including the absence of any legal restrictions and confirmation that there has been no “Company Material Adverse Effect.”
“The District Court’s ruling is a significant step toward being able to complete the Merger, which we continue to believe will position the Company to continue to deliver compelling benefits for physicians, patients and customers going forward,” said Gary Maharaj, President and CEO of Surmodics, in a statement following the decision.
The medical device and in vitro diagnostics technology provider expressed appreciation for its legal advisors and employees, crediting them for their commitment to defending the transaction while ensuring that day-to-day operations remained strong.
Despite the favorable outcome, the Surmodics–GTCR merger still faces regulatory oversight. Both parties must wait for the TRO to expire and for all other closing conditions to be satisfied before the acquisition can be finalized.