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Zombie Companies Surge: Healthcare Sector Faces Default Risk

11/2/2025

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Summary

Story summary

The number of "zombie companies" has surged to its highest level since early 2022, with nearly 100 U.S. firms unable to cover their interest expenses.
They face rising tariffs and funding costs, with little relief in sight.
Healthcare and biotech firms are at risk of default unless they restructure their finances, and private equity firms are hesitant to liquidate due to potential losses and reputational damage.

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Story summary

The number of "zombie companies" has surged to its highest level since early 2022, with nearly 100 U.S. firms unable to cover their interest expenses.
They face rising tariffs and funding costs, with little relief in sight.
Healthcare and biotech firms are at risk of default unless they restructure their finances, and private equity firms are hesitant to liquidate due to potential losses and reputational damage.