Redcare Pharmacy slumps as UBS starts with 'sell,' flags Amazon Pharmacy risk
21/05/2024 11:10
** UBS initiates coverage of Germany-listed Redcare Pharmacy
RDC.DE with "sell"
** The company's shares slump 11.7%, trading at 97.2 euros
per share at 1003 GMT time
** The broker sees Amazon's AMZN.O Amazon Pharmacy as a
"significant potential long-term threat" to the European online
pharmacy
** With Redcare a pure online player, UBS says the business
risks are potentially much more significant than for incumbants
of other verticals Amazon has entered, which had omnichannel
strategies to offset some online competition risk
** UBS also says the online pharmacy retailer's e-script
growth is more than priced in and e-script redemption by German
patients is an elevated risk, with no prescription price benefit
offered by online vs. local pharmacies
** UBS sets a target price of 86 euros per share
($1 = 0.9202 euros)
(Reporting by Marleen Kaesebier)
((Marleen.kaesebier@thomsonreuters.com))