The online pharmacy Redcare Pharmacy, known under the brand name Shop Apotheke, was able to also post a profit in the second quarter. The reason for this was a one-off effect of 14.2 million euros, as the mail-order pharmacy announced when presenting its interim report. This was related to the convertible bond transaction carried out in April. The mail-order company had issued a new bond and used part of the proceeds to repurchase an outstanding convertible bond. Accordingly, a net quarterly profit of 8.9 million euros was recorded in the second quarter.

Operations also ran smoothly. The most important key figure, the adjusted margin on operating earnings before depreciation and amortisation (EBITDA), reached 2.6% in the reporting quarter, up from 1.3% in the previous quarter, despite the fact that marketing efforts for e-prescriptions were stepped up once again. The success is impressive, as the mail-order pharmacy has expanded its market share everywhere, according to its own figures – especially in Germany and Italy. In Germany, Redcare Pharmacy has a 0.87% share of the prescription drug (Rx) market. The relevant market is estimated at 55 billion euros.

Complex regulations For the year as a whole, Redcare Pharmacy is aiming for an adjusted EBITDA margin of between 2.0 and 2.5%. At the same time, sales are expected to grow by at least 25%. In addition, revenues from prescription drugs in Germany are to be expanded to more than 500 million euros. In the first half of the year, the figure was 222 million euros.

After an analyst comment in early June raised doubts about the viability of the electronic prescription business, CEO Olaf Heinrich showed understanding. The regulatory environment is complicated and not always comprehensible at first glance, he said. However, Heinrich reassured analysts and investors that they could confidently assume that the management knew what it was doing and was acting with foresight. Gematik recently extended the approval of the Cardlink solution for submitting e-prescriptions until January 2027.

The CEO was pleased with the latest ruling by the Federal Court of Justice, which confirmed the legality of bonuses on prescription drugs. The ruling is similarly groundbreaking as the 2016 ruling, when the European Court of Justice overturned price fixing for prescription drugs in Germany. However, it is not yet clear whether online pharmacies are only allowed direct bonuses or also indirect bonuses in the form of vouchers for future orders. But that is more of a marketing issue, said Heinrich. Redcare Pharmacy is prepared for all eventualities in this regard as well.