Redcare Pharmacy: E-Prescription Boosts Stock Price!

Last Updated: 18. Dezember 2023By

Last Thursday, the German Bundestag decided to make e-prescriptions standard as of the beginning of the year and compulsory for doctors‘ offices. At the start of 2025, all the insured persons under the national health insurance system should receive electronic records of their medical data (test results and laboratory values) provided they agree to it.

This step and the subsequent announcement caused a further price surge and new yearly high for a certain stock: Redcare Pharmacy (formerly Shop Apotheke Europe). While the stock was worth 40 euros at the start of the year, it reached a new yearly high at 135.25 euros last Friday, making it by far the most successful stock from the MDAX segment this year 2023.

In 2023, the pharmaceutical title made an impressive rally. Clear path for e-prescription Now, Redcare seems to have a strong foundation for the hopes of most of its shareholders. After initial delays in the introduction of the e-prescription, the path seems to be clear to finalize its introduction in 2024.

This is particularly welcome, as seniors in certain postal code areas have to do without a pharmacy and the supply of children and seniors can be better organized. In addition, it will be compulsory from 2025 that hospital doctors also use the e-prescription.

Analysts have increased their price targets That the analysts had to adjust their forecasts regarding the valuation of Redcare Pharmacy after the decision of the German Bundestag is the logical consequence. The Frankfurt bank Metzler upgraded the stock from „Hold“ to „Buy“ and adjusted the price target to 156 euros.

Metzler is not alone in this, as many of their colleagues in the industry now see the chance that a new era will dawn for online pharmacies. And for the listed Redcare Pharmacy, the long-awaited opportunities will finally arise to make a significant increase in turnover and profit, which of course will be reflected in the share price.

Patience pays off at the stock exchange In this sense, it is once again a matter close to my heart to remind you how important it is sometimes to hold on to a stock when the story is right, the management is clean and the company is operating in a future market.

The result after a year of waiting pays off – and that does not have to be the end of the success story yet.