Potential High-Stakes Acquisition on the Horizon
Rewritten Article:
The Shaky Success of Online Pharmacies: DocMorris struggles amidst growing competition and lackluster profits.
The advent of online pharmacies has brought about a significant shift in the healthcare industry, yet one of its pioneers, DocMorris, finds itself in a precarious position. Saddled with debt stemming from acquisitions, the company was forced to revamp its strategy in 2022, with a focus on reaching profitability. Unfortunately, this goal remains elusive. In the 2024 business year alone, there was a stunning loss of approximately 97 million Swiss francs, compared to 118 million in the previous year. The board attributes this alarming operating loss to heightened advertising expenses for the electronic prescription in Germany.
On the surface, the gradual adoption of the electronic prescription since 2022 presents a massive growth market for online pharmacies. Surprisingly, these platforms generate the bulk of their business in Germany with over-the-counter drugs, health, and cosmetics products. The much larger market for prescription drugs sees only about one percent of revenue for online entities, while the approximately 17,000 brick-and-mortar pharmacies rake in approximately 56 billion euros.
Despite the mounting losses, DocMorris' efforts appear to be bearing fruit: the number of new customers for the electronic prescription tripled last year and even quintupled in the final quarter of 2024. However, the company remains in the red while Redcare Pharmacy, its competitor, aims for an operating profit this year. The struggles faced by DocMorris have left an indelible impact on its stock price, with a significant year-to-date loss of around 77 percent.
All signs point to a potential takeover bid for the struggling DocMorris. As a market leader with 10.3 million customers, it presents a promising acquisition target for interested parties. Who might these buyers be, and should you brace yourself for a potential drop, are questions worth exploring.
You can find answers to these questions and more in the latest issue of BÖRSE ONLINE.
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- In the midst of financial turmoil, DocMorris, an online pharmacy pioneer, is exploring personal-finance strategies to achieve profitability, despite facing stiff competition and substantial losses.
- Amidst the signs of a potential takeover bid for struggling DocMorris, investors considering entering the online pharmacy business might find it advantageous to scrutinize the financial performance of competing entities like Redcare Pharmacy, which aims for an operating profit this year.
