Over the past decade, a new term has emerged in the global economy that has stirred both interest and concern: “zombie companies”. These companies, while formally operating, live in the shadow of debt, and are only able to “survive” thanks to low interest rates and the support of financial institutions. Unable to generate sufficient profits to repay capital, they constitute an unusual economic phenomenon that affects both market dynamics and financial stability. “Zombie companies” not only hinder the potential for economic growth, but also raise questions about the effectiveness of monetary policy and government interventions in times of crisis. This article will explore the causes of their emergence, their consequences for the global economy, and possible strategies for managing them. Analyzing various cases from different parts of the world, we will also look at whether there are effective methods for “saving” zombie companies and what challenges economic decision-makers face when making decisions about their future.
What are zombie companies?
Zombie companies are companies that do not have enough profits to continue operating and servicing debt, but are unable to repay their debt. Such companies, given that they survive only on overhead costs (e.g., salaries, rent, interest on debt), do not have surplus capital that they can invest to stimulate growth. “Zombie companies ” are particularly dependent on banks for financing, which is essentially their source of income. Zombie companies are also known as “living dead” or “zombie stocks.”
With the current medical standards, the birth of a new medicinal product (drug) can only become a fact as part of a long and expensive research and development process. Such a process is burdened with a high risk of failure. Usually, the research and development process lasts many years and is low in efficiency. However, such research is undoubtedly needed.
How to obtain permission for a clinical trial of a medicinal product?
In order to obtain permission to conduct such a trial in the territory of the Republic of Poland, an application for permission must first be submitted. Such an application may be submitted only by the sponsor – which stands for a natural person, company, institution or organization responsible for initiating, managing and arranging the financing of a clinical trial (Article 2, paragraph 2, point 14 of the Regulation of the European Parliament and of the Council (EU) No 536/2014 of 16 April 2014, OJ EU.L.2014.158.1). The sponsor is obliged to submit such an application via CTIS (i.e. the new European system, Clinical Trials Information System) to each interested Member State concerned by a given clinical trial. In the case of the Republic of Poland, the body that issues permits for clinical trials is the President of the Office for Registration of Medicinal Products, Medical Devices and Biocidal Products.
The Whistleblower Protection Act of 14 June 2024 is a key element of the Polish legal system, aimed at protecting people reporting irregularities in the workplace (Article 4 of the Act – definition of a whistleblower). The provisions of this legal act focus primarily on ensuring effective internal reporting mechanisms, which aims to build a culture of compliance with the law in organizations. The Act sets out obligations for employers and gives whistleblowers specific tools to defend their rights. This analysis focuses on key aspects of the Act, such as reporting procedures, whistleblower protection and the impact of the Act on employee-employer relations.
KG LEGAL KIELTYKA GLADKOWSKI is pleased to announce that our lawyers will participate in the 6th Conference on “New Technologies and Artificial Intelligence: Legal and Practical Aspects of the Digital Economy,” which will take place on October 25-26, 2024. This event, organized by the Department of Economic, Civil and Digital Economy Law at the University of National Education Commission in Kraków, and co-organized by the Department of Civil and Private International Law at Cardinal Stefan Wyszyński University, the National Information Processing Institute – State Research Institute, and the Academy of New Technology Law (UKEN), is one of the most important meetings concerning the legal aspects of new technologies in Poland.
The conference will be dedicated to a comprehensive analysis of the challenges and opportunities brought by the development of artificial intelligence and other technological innovations, which are increasingly influencing the law, the economy, and social life. The main goal of the event is to address key regulatory, legal, and practical issues related to the implementation of new technologies, both from a national and international perspective. The conference program includes several key thematic panels:
Digitization of Judicial and Administrative Proceedings
The risks associated with artificial intelligence in healthcare are extremely diverse and complex. These may include not only potential harm to patients, but also impact on medical practice, physician effectiveness, and medical ethics. For example, artificial intelligence algorithms can influence the clinical decisions of physicians by suggesting diagnoses or therapies based on the analysis of patients’ medical data. However, if these algorithms are not sufficiently accurate or are not properly tested, they can lead to misdiagnoses or therapeutic recommendations, which in turn can negatively affect patients and treatment outcomes.
Therefore, it is necessary to properly classify and identify the risks associated with each artificial intelligence tool in health care. Some algorithms can represent low risk when used in simple tasks, such as analysing laboratory test results. However, if they are used in more complex situations, for example in the diagnosis of diseases, the risk can be much greater.
