Online Pharmacy Faces Challenges in Germany’s E-Prescription Shift

  • DocMorris cuts guidance on first-half loss due to decline in paper prescription sales and limited market access
  • Expected adjusted EBITDA loss of around CHF 50 million for 2024, up from previous forecast of break-even
  • Sales growth estimate revised down to 5%-10%, from 10% previously
  • Adjusted EBITDA margin target remains at 8% in medium term
  • First half adjusted EBITDA loss narrows to CHF 20.1 million, beating analyst expectations

DocMorris, the Switzerland-listed online pharmacy, has revised its guidance for the first half of the year due to a decline in paper prescription sales and limited market access caused by Germany’s shift to e-prescriptions. The company now expects an adjusted EBITDA loss of around CHF 50 million ($58 million) for 2024, up from its previous forecast of breaking even. Sales growth is estimated between 5% and 10%, down from the previous 10%. The revised forecast includes the e-prescription business. Despite this, DocMorris maintains an adjusted EBITDA margin target of 8% in the medium term. In the first half of the year, the adjusted EBITDA loss narrowed to CHF 20.1 million from CHF 20.8 million in the prior-year period, beating analyst expectations of a CHF 21.3 million loss. Since Germany’s introduction of digital prescriptions in April, DocMorris has seen continuous growth in its prescription business.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about DocMorris’s updated guidance on its financial performance, including changes in expected loss, sales growth, and adjusted Ebitda margin. It also includes relevant details about the impact of Germany’s shift to e-prescriptions on the company’s business. The information is based on the company’s own forecast and analyst expectations, making it a reliable source.
Noise Level: 2
Noise Justification: The article provides relevant information about DocMorris’s financial performance and guidance adjustments due to changes in the German market. It includes specific numbers and comparisons to previous forecasts and expectations. The content is focused on the topic without diving into unrelated territories.
Public Companies: DocMorris (not provided)
Key People: Helena Smolak (Author)

Financial Relevance: Yes
Financial Markets Impacted: German financial markets and pharmaceutical companies
Financial Rating Justification: The article discusses DocMorris’s adjusted EBITDA, net loss, and sales forecast, which are financial metrics that impact the company’s performance and can affect the stock prices of similar businesses in the pharmacy industry. The shift to e-prescriptions in Germany also has an impact on the market access for these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: No market move size mentioned.
Sector: Healthcare
Direction: Down
Magnitude: Small
Affected Instruments: Stocks

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