Pharmacy Redcare Shocked by Outcomes
Redcare Pharmacy, a MDAX-listed company headquartered in the Netherlands, has announced impressive financial results for the second quarter, surpassing market expectations in profit. This success is attributed to positive one-time effects from successful convertible bond transactions on April 8.
The company reported a final quarterly revenue of €709 million, with prescription medicines accounting for €114 million. The adjusted EBITDA margin in the second quarter was 2.6%, exceeding the 2025 target range of 2.0% to 2.5%.
However, the spotlight is not only on Redcare Pharmacy's financial growth. A recent ruling by the Federal Court of Justice (Bundesgerichtshof, BGH) in Germany has allowed large foreign mail-order pharmacies like Redcare Pharmacy to resume offering discounts on prescription medications in Germany.
This ruling, which stems from a BGH decision that references previous legislation, seemingly permits such discounts despite current German social security law prohibiting discounts or bonuses for statutory health insurance patients at German pharmacies.
The implications of this decision are significant and contentious. The German Pharmacists' Association views the discounts by foreign online pharmacies as a clear violation of law and a threat to established price controls designed to protect pharmacies and patients. They warn that allowing discounts could lead to a ruinous price war, undermining the viability of local pharmacies.
The Federation of German Pharmacists calls for government intervention to stop the discounts and enforce existing laws safeguarding pharmacy remuneration and patient supply security. No further concrete government measures or legislative changes have been reported yet as of August 2025, but the pharmacists' associations are urging the Federal Health Minister for corrective steps to preserve the German pharmacy infrastructure and control over medicine pricing.
Despite the ongoing legal controversy, Redcare Pharmacy's CEO Olaf Heinrich expressed satisfaction with the company's performance across all countries. The stock of Redcare Pharmacy has gained momentum due to its sudden turnaround and expansion of margin and growth momentum.
On a net basis, Redcare Pharmacy achieved a profit of €8.9 million in the second quarter. Weak days remain buying opportunities for speculatively oriented investors. The Net Promoter Score (NPS) of Redcare Pharmacy stabilized at 64.
Tomorrow is the decision day for the extension of Redcare Pharmacy's CardLink solution. The latest update regarding the BGH ruling involves this decision that effectively allows large foreign mail-order pharmacies like Redcare Pharmacy to resume offering discounts on prescription medications in Germany.
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- Despite the ongoing legal controversy concerning discounts on prescription medications in Germany, the success of Redcare Pharmacy extends beyond its financial growth in the science and health-and-wellness sector, as its CEO Olaf Heinrich expressed satisfaction with the company's performance across all countries, and the company's stock gained momentum due to its sudden turnaround and expansion of margin and growth momentum.
- In an attempt to protect the German pharmacy infrastructure and control over medicine pricing, the Federation of German Pharmacists calls for government intervention to stop the discounts offered by foreign online pharmacies like Redcare Pharmacy, citing these discounts as a threat to established price controls and the viability of local pharmacies, which aligns with the finance and business aspects of these entities.
