The competitive landscape for Germany’s online pharmacy sector is intensifying. Two of the nation’s largest drugstore chains, dm and Rossmann, are making aggressive moves to capture a greater share of the digital over-the-counter (OTC) medicine market, directly challenging the core business of Redcare Pharmacy. In response to this mounting pressure, Redcare’s management has already revised its financial targets downward, a decision that has further weighed on its already-depressed share price.
Rossmann has now declared the establishment of its own online pharmacy a central project for the current year. The operation will be based in the Netherlands and is designed to compete directly with Redcare. A key advantage is Rossmann’s proprietary app, which boasts approximately 11 million active users. This follows dm’s earlier entry into the space; the competitor has been selling thousands of non-prescription products via its own platform since late 2025.
Faced with this heightened competition, Redcare has been forced to implement strategic cutbacks. Chief Executive Officer Olaf Heinrich has reduced the growth forecast for the OTC segment from an initial 16% to a new range of just 8 to 10%. Concurrently, the company’s medium-term margin target has been compressed from 8% down to 5%. These revised outlooks triggered further selling pressure on the stock market. The shares hit a fresh 52-week low of €30.74, extending their twelve-month decline to approximately 75%.
A Prescription for Stability
Amid the OTC turmoil, Redcare’s prescription drug (Rx) business offers a relative safe haven. This regulated market continues to provide the company with a structural advantage, as Rossmann has currently ruled out selling prescription medications. Redcare’s foundation here is solid, with Rx revenue reaching €503 million last year and commanding a 67% market share in Germany.
Should investors sell immediately? Or is it worth buying Redcare Pharmacy?
Management is targeting revenue exceeding €670 million from this division in 2026. To support overall growth capacity, the group recently commissioned a new logistics center in Pilsen, Czech Republic. This facility is capable of handling an additional 15 million OTC packages annually.
Spring Calendar: Key Dates for Investors
Two imminent events will help shape the company’s future direction:
- April 15, 2026: The Annual General Meeting, where the appointment of the new Chief Financial Officer, Hendrik Krampe (formerly of Amazon), is expected to be confirmed.
- May 6, 2026: Publication of the first-quarter financial results.
The report in early May will deliver the first substantive data on whether the OTC segment is stabilizing in the face of new competition and if the group’s targeted margin of at least 2.5% remains achievable.
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