Surmodics (SRDX) Soars 50% as Court Clears Key Merger Hurdle with GTCR

Surmodics (SRDX) surged nearly 50% in pre-market trading on Nov. 12, 2025, following a pivotal legal ruling that cleared a key hurdle in its $627 million acquisition by private equity firm GTCR. A federal court denied the Federal Trade Commission's request for a preliminary injunction to block the merger, with Judge Jeffrey Cummings ruling that the agency failed to demonstrate immediate harm to competition in the medical device coatings market. The decision allows the deal to proceed pending a temporary restraining order expiration in November.

The FTC had argued in March that the transaction—uniting the two largest producers of critical medical device coatings—would create anticompetitive risks. Surmodics CEO Gary Maharaj emphasized the ruling as a "significant step" toward completing the merger, which he stated aims to enhance value delivery for healthcare stakeholders. The $43-per-share offer, agreed in May 2024, now faces fewer regulatory obstacles after the court's rejection of the agency's motion.

Legal developments remain central to Surmodics' near-term trajectory, with market reactions closely tied to regulatory outcomes. The stock's pre-market spike reflects renewed confidence in the merger's viability, though final approval hinges on the Nov. 12 deadline for the temporary restraining order. Investors are likely monitoring for additional antitrust challenges or voluntary deal adjustments that could emerge before the window closes.

Backtest assumptions suggest a strategic focus on event-driven momentum following regulatory rulings. A hypothetical long position initiated on the day of the court decision could capture upside potential from reduced merger uncertainty, while stop-loss parameters might align with key support levels identified in the stock's pre-announcement range. Position sizing would depend on volatility metrics observed during similar merger-related trading patterns in the medtech sector.