Redcare Pharmacy Faces Mounting Pressure as dm Enters Online Healthcare Arena

Shares of Redcare Pharmacy continue to struggle, currently trading near €65 and remaining trapped in a persistent downtrend. The stock has lost half its value since the start of the year. While the company works to strengthen its balance sheet, investor anxiety is mounting over the looming competitive threat from German retail giant dm-drogerie markt.

The core challenge for Redcare became clearer in mid-December. The drugstore chain dm launched "dm-med," a new online service for over-the-counter medications, shipping from a logistics center in the Czech Republic. This move places a financially robust competitor directly into Redcare's primary market.

Analysts at UBS highlighted this development in a research note dated December 17. They pointed out that Redcare was significantly more active in the fourth quarter than its rival DocMorris, likely a direct response to dm's market entry. The Swiss bank maintains a neutral rating on the stock with a price target of €74.

Debt Reduction Provides Balance Sheet Relief

In a separate financial development, Redcare announced the early redemption of a convertible bond last Friday. Bondholders exercised their repayment rights for a total volume of €64.5 million. This settlement is scheduled for January 21, 2026.

Should investors sell immediately? Or is it worth buying Redcare Pharmacy?

Following this transaction, only €2.6 million of the original 2021/2028 bond issue remains outstanding. With liquid funds of €265.6 million as of the end of September 2025, the repayment is easily financeable. This deleveraging provides the balance sheet with more flexibility, at least on paper.

No Dividend Amid Strategic Investments and Technical Weakness

Shareholders should not expect a dividend payout in 2025. Redcare is among the MDAX companies forgoing dividends to instead channel capital into logistics and market defense initiatives.

From a technical analysis perspective, the situation remains tense. The share price is currently testing a support zone between €63 and €64. Whether this level holds will be determined in the coming days, heavily influenced by how aggressively dm prices its new service and how effectively Redcare can defend its market share.