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On Wednesday, Kepler Cheuvreux analysts downgraded Redcare Pharmacy stock from Buy to Hold, adjusting the price target to €130 from €150. The downgrade is attributed to concerns over the upcoming transition in Germany’s digital prescription system.
Analysts highlight a critical structural risk tied to the GesundheitsID system, which is set to replace CardLink as the primary method for digital prescription fulfillment by April 2026. Redcare Pharmacy could face challenges due to the voluntary nature of GesundheitsID, which may limit its adoption among patients.
Without widespread adoption of GesundheitsID, patients will not be able to redeem e-prescriptions through online pharmacy apps using the existing CardLink technology. This shift is part of the new Proof of Patient Presence (PoPP) framework, requiring digital identity-based authentication.
The analysts note the lack of a mandate for GesundheitsID use and limited public awareness as significant concerns. This could lead to a substantial portion of Redcare’s eRx-eligible customer base being excluded from digital fulfillment channels.
Redcare Pharmacy’s strategic advantage in the German prescription market could be undermined if the transition to GesundheitsID is not widely adopted, potentially stalling the company’s eRx growth momentum.
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