I recently coined the phrase "Zombie Ortho Companies" and wrote about a particular Zombie Spine company called, Spineway. Spineway is a good example and easy to highlight because they are publicly traded.
But wait.
The bigger picture is that the orthopedics industry has become littered with Zombie companies ever since the financial markets flipped and became "risk off" in May of 2022. Ten yeas ago, Zombie Orthos were rare because they could always get more funding, buy time and figure out a successful outcome. But the world is different now.
Today there are easily 50 additional Zombie Orthos in existence but I do not want to call them out. You know who they are.
So let's look deeper. What is the criteria of a Zombie Ortho Company?
1/ Financially Drained:
Perpetual Debt: The company generates just enough cash flow to cover its operating expenses and service the interest on its debt, but never enough to pay down the principal amount. It's stuck in a cycle of refinancing to survive.
Unprofitable: Revenue doesn't cover all costs, leading to consistent losses. This makes them unattractive to traditional investors seeking returns.
2/ Investment Roadblock:
Blacklisted by Capita...
