Group sales target
Large market – low online penetration
The German electronic prescriptions (eRx) market is estimated to be close to EUR 43bn a year. With a cumbersome, paper based prescription process, online penetration is currently just 1%. On January 1st 2022 eRx will become mandatory and this will vastly increase online penetration. For example, in Sweden eRx penetration is 100%. In Germany, the OTC healthcare market penetration is currently at 20%. While Germany, Europe’s largest market, offers a once-in-a-lifetime opportunity, other less developed European markets offer as well additional mid to long term growth potential.
#1 position: size, brand, tech, know-how
Zur Rose Group is Europe’s #1 online pharmacy. The brand awareness of our DocMorris brand is far and away the leader. And we have almost 30 years of dealing with complex regulatory systems and building relationships in healthcare. The Zur Rose Group also has a powerful and growing e-commerce expertise, with over 11m active customers, a tech basis with 3 tech hubs, and a leading role in eRx technology, as well as customer centric applications and websites.
The mandatory introduction of eRx in Germany at the start of 2022 will unlock the Rx market for e-commerce and create a “once-in-a-lifetime” opportunity for the Zur Rose Group. We were the pioneers of eRx in Switzerland back in 2001, and together with IBM have been actively involved in designing the German eRx system, helping create the nationwide eRx server infrastructure. With our leadership position in Germany and customer centric products, we are ideally positioned to take full advantage of the biggest opportunity ever presented to us.
Our vision of a "health in one click" ecosystem allows us to move from distribution to a comprehensive healthcare service provider. We have identified 10 chronic diseases and designed specific health journeys within our health ecosystem. This will enable chronically ill people to manage their health in one click. We are already partnering with relevant stakeholders and best-in-class providers of solutions for these specific disease areas. Telemedicine is the cornerstone of some of these journeys and with our telemedicine provider TeleClinic, we will offer convenient access to general and specialist physicians, allowing easy access to expert advice and consultations.
In financial terms we are ahead of our “once-in-a-lifetime” growth story, driven by eRx, with an attractive, medium-term, EBITDA margin target of around 8%. We are convinced of the growth opportunity driven by the introduction of eRx in Germany, and believe online penetration of Rx can reach around 10% in a time frame of 3 to 5 years with further potential beyond this. At the beginning of this period we expect to grow revenue to over CHF 4 billion. The introduction of our healthcare ecosystem will also create meaningful potential for additional revenue and profit upside.