DocMorris AG (OTCPK:ZRSEF) This autumn 2023 Outcomes Convention Name March 21, 2024 6:00 AM ET
Firm Members
Walter Hess – CEO
Marcel Ziwica – CFO
Convention Name Members
Sebastian Vogel – UBS
Urs Kunz – Analysis Companions
Milan Koch – Deutsche Financial institution
Michael Heider – Warburg Analysis
Walter Hess
Sure. Thanks very a lot. Good morning, and welcome everyone to as we speak’s convention name. It’s an distinctive name as we speak as it’s the first time on this spherical that the digital prescription in Germany is actuality. With me as we speak is Marcel, our CFO.
We are going to begin the decision with a enterprise improve and its affect on the evolution of the DocMorris digital well being ecosystem adopted by our full yr outcomes and the outlook on our enterprise yr this yr. Afterwards, as all the time, we’re trying ahead to answering your questions.
Let’s start with the important thing messages as proven on Slide #4. To start with, we will verify that we’re again to development and achieved the total yr outlook with a rise of the income of 14% in This autumn ’23 versus ’22, and development of our lively buyer base. General, we improved our adjusted EBITDA by CHF 51 million in 2023, by attaining our milestones in H2, corresponding to streamlining our organizational construction, together with the company construction, additional enhancing our logistics and advertising and marketing efficiency and usually lowering prices. A very powerful and most enjoyable growth is that the eScript has been launched mandatorily in January and very quickly grew to become the brand new customary in Germany. We began efficiently with eRx.
First indications of market shares are promising. Subsequent-day supply of eRx orders is working very effectively, and the steadiness and scalability of our processes and programs are confirmed. Everyone was ready for the discharge of the so-called CardLink answer. I am actually glad to verify as we speak that the ultimate specs have been printed final Tuesday by Gematik and that we instantly have utilized for certification, in the identical day. And due to this fact, we anticipate to go dwell shortly.
However that is not all. In a while, we offers you an replace on the repeats script and our TeleClinic platform as a part of the digital well being ecosystem.
You ramp up of the variety of eScripts since January is just wonderful. By now, 120 million prescriptions which have been issued electronically. In different phrases, greater than 70% of all Rx within the final 7 days have been issued electronically. And about 85% of physician’s practices prescribed electronically as we speak. Inside Rx, we’re broadly in keeping with our previous paper Rx market share and improved month by month regardless of quick change from paper Rx to eRx and our presently restricted entry to solely about 20% of eScripts which might be printed out.
That is why the total market entry with the seamless carbon answer is completely important for us.
Final spring, our staff invented a seamless digital redemption answer to redeem eRx by way of the NFC cable eGK with a smartphone, equal to the method in native pharmacies. Along with the European Affiliation of ePharmacists, we agreed with the Well being Ministry and Gematik to observe a certification course of so as to implement the answer referred to as CardLink, because the official for redemption channel.
This week, the ultimate specification primarily based on a mutual content material between the BSI and Information Safety Officer with Gematik and actually that is completely exceptional, has been printed by Gematik. And on the identical day, we utilized for certification of our product and thus, as a supplier. So the approval and go dwell is anticipated shortly. Getting this achieved is a key milestone and the prerequisite to get entry to the total market and to additional improve our market share. The redemption course of is itself, as you see on the right-hand aspect on the slide, could be very straightforward and wishes solely three steps.
First, an authentication. Second, a digital scan of the eGK, which final usually round 5, perhaps as much as 10 seconds most. And third, already the checkout. This allows a quick and simple ordering of prescribed medicine with the chance so as to add OTC and Magnificence Private Care product inside the similar ordering course of. Importantly, eRx orders obtained digitally by 8:00 p.m. are delivered by us subsequent day throughout Germany. And to make it much more handy, we began an Rx subscription service already final yr.
In Q3 ’23, we launched a pilot initiative of a handy subscription service for sufferers with persistent medicine demand, which now is able to scale. A affected person can profit from a steady supply of all his medicine all year long, which supplies him excessive confidence on medicine provide and will increase adherence, which is clinically confirmed. For medical doctors, this course of has many advantages. The German well being minister even introduced just lately that medical doctors will get all of the prescriptions reversed for 1 yr upfront, the primary time they see the sufferers within the yr and the Minister will convey the required regulation into power this yr. It will relieve medical doctors and their practices considerably, liberating up time for them and improve the effectivity in medical doctors’ practices.
Our expertise of the final 6 months with this service could be very constructive. We are able to enhance all key KPIs considerably, corresponding to basket measurement, order frequency, retention price, buyer lifetime worth and return on promoting spend. Our totally digital repeat grid service is a wonderful instance of what our ecosystem stands for, to convey collectively related stakeholders within the healthcare system to allow sufferers to handle their well being in a single click on. And for us, it is one other key success issue on the best way to worthwhile development.
The necessary launch of eRx is known as a distinctive alternative. We now have launched a broad advertising and marketing marketing campaign with Die Gesundbergs. A household who lives on a distant island is barely [quirky] and misplaced the providers and provide from DocMorris. The marketing campaign is concentrated on switching current Rx and OTC clients to eRx and, after all, additionally to realize new clients.
On Slide #8, you see some [indiscernible] of the marketing campaign, which achieved glorious KPIs with greater than 400 million impressions already in digital channels and greater than 200 million TV attain to this point. By scanning the QR code on the backside proper, you’ll be able to watch one among our spots on YouTube.
To summarize and conclude the enterprise replace. The tipping level in a EUR 55 billion marketplace for prescribed medicine in Germany is lastly reached. The digitalization of the healthcare system in Germany has positively taken off. The launch of the necessary eScript is the muse on which we will start to seize the market. The launch of the seamless digital redemption channel for eRx through the use of the eGK and the smartphone will speed up to handle the total market potential as of now.
And on high, the mixture of the repeat script with the yearly upfront remuneration of the medical doctors might be an actual multiplicator for all related KPIs. And if that wasn’t sufficient, the digital entity and e-patient file foreseen by the Ministry for 2025 will even additional improve an built-in and totally digital medicine provide and healthcare.
So what’s the affect of all of that on our digital well being ecosystem? Digitization normally and the eScript particularly are the components of the best and environment friendly ecosystem. It permits us to increase our providing to sufferers and clients past medicine and to enrich it with added worth providers with excessive margins corresponding to telemedicine, persistent care or Platform-as-a-Service. The outcome, beside increased revenues and margins is an elevated affected person loyalty and buyer retention. And to not overlook, the digital well being ecosystem is designed for use for worldwide growth and to contribute to long-term profitability.
On the subsequent few slides, we are going to present you that we’ve additional developed our ecosystem, which is able to scale with the eScript. Let me offer you a concrete instance on Slide #12. For particular ailments, corresponding to diabetes, for instance, we provide the persistent affected person options, which embrace merchandise, providers and content material to cowl all their wants alongside their well being journey. And in consequence, we first can improve the basket sizes of current clients. On this slide, you’ll be able to see, for instance, our answer for diabetes sufferers who should purchase the required merchandise, together with medicine and medical merchandise.
Second, purchase and allow new clients by including related content material and join them to specialists, if wanted. And third, improve loyalty and decrease churn by providing them our Rx subscription service to cowl the persistent demand.
One other concrete instance of our built-in digital well being ecosystem method, you see on Slide #13. TeleClinic, an organization of DocMorris is the main telemedicine supplier in Germany. In the meantime, TeleClinic was nearly 1/3 of all video consultations in Germany, greater than 2,000 German medical doctors use the platform actively, and TeleClinic powers with greater than 40 insurance coverage firms. Only recently, they gained the tenders of DAK, one of many largest insurance coverage firms in Germany and ADAC, Europe’s largest car affiliation with greater than 20 million members. And equally, as seen for DocMorris earlier than, additionally for TeleClinic, regulatory and know-how change from being preventers to being drivers of the longer term.
The digital regulation will take away the prior restrict of 30% reimbursable telemedicine. Moreover, there isn’t any longer a requirement to do telemedicine therapies from the physician’s observe, medical doctors can now additionally deal with sufferers by way of video from dwelling. And on the know-how aspect, the introduction of the eSick be aware in 2023 and the eScript this yr and the e-patient file in ’25 are actual accelerators of the TeleClinic enterprise mannequin.
However not solely has TeleClinic excessive worth as a part of the DocMorris digital well being ecosystem, but additionally stand-alone reveals extremely enticing financials. The very motivated and engaged TeleClinic staff doubled their income in 2023 with excessive margins and anticipate a constructive EBITDA in 2024. And much like DocMorris, they act in a EUR 50 billion largely untapped market with regulatory tailwind with a web based penetration of lower than 1% and an immense value discount potential for the healthcare system in Germany.
Let me conclude the primary a part of as we speak’s name with an replace on our sustainability actions on Slide 15. The Board and administration of DocMorris have set bold short-, mid- and long-term targets to repeatedly enhance within the 4 sectors of more healthy folks, sustainable planet, caring firm and dependable partnerships. Essentially the most exceptional achievement in ’23 is the discount of our CO2 emissions by 13%. However after all, additionally all different targets are equally vital and adopted with the identical excessive administration consideration. Additionally for the yr 2024, we’ve outlined new bold targets that are a part of the short-term incentive scheme of the Govt Board.
And with that now, I wish to hand over to Marcel to present us an replace of the financials.
Marcel Ziwica
Thanks, Walter. The monetary yr 2023 was characterised by three matters: first, our path to profitability; second, the return to development; and third, the strengthening of our steadiness sheet. Let’s begin with profitability.
We are able to clearly see on the continuing progress over the past 2 years, with a big EBITDA enchancment of CHF 83 million. All of the measures for breakeven proven on this chart have been initiated and can proceed to have a big constructive affect sooner or later. The primary focus within the second half of ’23 was on one, additional creating the shopper expertise for instance, by way of sooner supply; two, increasing the vary of providers corresponding to our lengthy tail market; and three, the rise in comfort of the ordering course of. Right here, the sooner checkout was an important milestone. This altogether will lead us to worthwhile targets from 2024 onwards.
In parallel, to the EBITDA enchancment, we additionally managed to return to development, as is proven on Slide 18. We see regular development in consolidated income since H2 ’22. In H2 ’23, gross sales elevated by 15.5% year-on-year. We don’t really feel numerous affect from inflation as Rx costs are mounted and our OTC BPC costs are nonetheless considerably cheaper than native pharmacies. Gross margin expanded by 150 foundation factors year-on-year.
The advance is predicated on higher buy circumstances, gross sales worth optimization and model integration. Although the second half was barely decrease than anticipated as a consequence of decrease prescription drug gross sales, the general constructive affect is sustainable. We anticipate the implanted measures to have a constructive affect additionally in 2024. Our EBITDA margin improved by 430 foundation factors regardless of extra roughly EUR 5 million of eScript ramp-up prices for advertising and marketing and CardLink growth.
As ordinary, we present additionally the breakdown into the geographical segments. To mirror market requirements, on this view, company prices are any further totally allotted to the segments. Clearly, by far, the best affect comes from Germany, I coated the event already with the group figures. In Europe, the constant give attention to breakeven results in a 9% decline on gross sales, however a powerful improve in gross margin and a really pleasing EBITDA margin enchancment of 10 share factors.
In our underlying KPIs, we see general a really steady and sustainable growth. Comparable to the inflection level in income, additionally quite a lot of lively clients grew once more within the second half of 2023, with 300,000 new clients gained within the fourth quarter. [indiscernible] decreased on a 12-month foundation due to the numerous discount in advertising and marketing spend to give attention to worthwhile clients and the model integration within the second half of ’22. Basket measurement and different frequencies are very steady and proceed to indicate the very enticing unit economics of Rx, which is our development space for the approaching years.
On Slide 21, we see our P&L on a full yr foundation. Right here, I wish to spotlight the numerous discount in working bills because of the breakeven measures. As already defined within the first half communication the model integration along with web site closures like Medpex and Eurocom was one vital driver. This resulted within the monetary in-sourcing of serious a part of the enterprise into the scope of consolidation. Extra particularly, this leads normally to 1, a rise in consolidated income and thus a discount within the distinction to exterior income; two, a big improve within the gross margin; and three, a rise in personnel, advertising and marketing and distribution bills.
Regardless of this, absolutely the variety of personnel and advertising and marketing bills declined due to enhanced advertising and marketing effectivity, improved logistics efficiency and the streamlining of our company construction. The sustainable growth on all line gadgets present an general constructive pattern and strongly assist the trail to profitability. The EBITDA changes for one-offs diminished once more and quantities to CHF 3.5 million, primarily pushed by provisions for restructuring and integration. The monetary outcomes have been negatively impacted by noncash overseas trade translation because of the trade price on the steadiness sheet date. Nonetheless, money curiosity prices remained steady year-on-year.
Along with the web revenue from discontinuing operations, it results in a constructive contribution to [indiscernible]. Within the steadiness sheet, we see a transparent strengthening primarily attributable to the sale of the Swiss enterprise. The fairness ratio elevated to roughly 50%. Whole property declined by CHF 233 million and underlying the extremely enticing asset-light enterprise mannequin. The money and money equivalents, together with present monetary property of CHF 150 million allows the reimbursement of the board majority in November and helps our operations.
As on the steadiness sheet date, the money place was negatively impacted by a short lived improve in internet working capital of EUR 24 million. The explanation for this was to make sure supply functionality over the vacations and stop bottlenecks in incoming items. The normalization with a constructive money affect already occurred within the first quarter ’24. As well as, the sale of the Swiss property will generate an extra money influx in Q2.
In abstract, we proceed to indicate robust progress. We now have achieved our ’23 targets and are reliably on the trail to worthwhile development on the idea of a powerful steadiness sheet.
With that, I hand again to Walter for the outlook.
Walter Hess
Sure. Thanks, Marcel. Sure, so let’s conclude the presentation with our monetary outlook, which is very troublesome to offer this yr and due to this fact is indicative.
Let me clarify how we take into consideration 2024. First, we wish to remind you once more that the German prescription market with in the meantime, EUR 55 billion is 5x bigger than the OTC market and has a web based penetration of 0.7% solely as of now. The deep dive into the unit economics, as proven on the left-hand aspect of the slide, reveals that the annual income and the contribution margin of a affected person with persistent demand in absolute worth is greater than 5x increased than for an OTC buyer. Mixed with a considerably increased retention price, this results in a 10x increased buyer lifetime worth. So what does this imply for us on this yr.
Our place to begin is breakeven in our base enterprise. The eScript is a actuality and the handy digital ordering answer by way of CardLink is confirmed and coming very quickly. And primarily based on the unit economics and the shopper lifetime worth comparability. It makes numerous sense to put money into Rx buyer acquisition now. We already began our marketing campaign, and we observe a milestone-based advertising and marketing method to coach sufferers and purchase new Rx clients.
Given how dynamic this market is, flexibility is required on absolutely the quantity of promoting spend. And relying on the velocity of adoption of the web channel, the Rx contribution margin can partially or utterly compensate their advertising and marketing bills and would possibly lead general to a unfavorable to impartial EBITDA in 2024.
Now coming to the concrete outlook now. As we speak, the eRx ramp-up is just not fully predictable. Nonetheless, because the eScript is a actuality now, we embrace eRx in our 2024 outlook. Primarily based on this, we offer a sign for our outlook. Exterior income in fixed currencies to develop above 10% for full yr ’24 in comparison with ’23.
Adjusted EBITDA is anticipated within the vary of breakeven to minus EUR 35 million in ’24. Capital expenditure for ’24 is deliberate between EUR 30 million and EUR 40 million, and our midterm EBITDA margin goal is confirmed at round 8%.
And a glance into the present buying and selling reveals that altogether, gross sales are in keeping with this indication. OTC gross sales grew properly. Additionally partially primarily based on the truth that we nonetheless have been in consolidation part 1 yr in the past. Paper Rx gross sales, after all, decline as sufferers undertake to eRx rapidly. And our eRx market share primarily based on the nonetheless restricted accessible print out artwork is encouraging, which largely compensates the paper Rx decline.
We anticipate the primary half yr figures will give us additional readability on the eRx ramp-up and the extra correct view on the outlook. With this, we full our presentation and now are trying ahead answering your questions. Thanks.
Query-and-Reply Session
Operator
[Operator Instructions] The primary query comes from Sebastian from UBS.
Sebastian Vogel
Are you able to hear me?
Walter Hess
Sure, sure, we do.
Sebastian Vogel
Nice. I’ll ask three questions. I might ask them one after the other. And the primary one is on the steerage. With regard to the changes that you’d embrace there on your EBITDA.
Do you have got any type of indication or type of a ballpark, which we will have a look at in that regard?
Marcel Ziwica
Generally, we don’t actually plan on changes as a result of they’re one-offs. However what we see is because of the sale of the property for the Swiss enterprise, there might be an distinctive acquire as a result of the anticipated gross sales worth is above reserving worth.
Sebastian Vogel
Received it. And rapidly with regard to the steadiness sheet, clearly, with regard to the money place simply having a few issues that I need to throw at you, I need to understand how we predict in that regard? So we’ve the EUR 150 million as a place to begin, there would be the earn-out, there would be the sale and leaseback that doubtlessly add some EUR 70 million, so we get to EUR 220 million. Then you have got the bond takes out EUR 90 million, so we get EUR 130 million. After which I’ve the EBITDA of minus EUR 17 million.
I’ve some CapEx of minus EUR 35 million. And I assume you’ll develop ultimately and due to this fact, doubtlessly then additionally, you will have some internet working capital in — extra internet capital wants round like perhaps EUR 20 million which might convey me to round like EUR 60 million by the tip of the yr. Is that the type of the route from a money bridge that you just additionally assume on this type of route? Or do you have got another ideas that you just wish to share on this context?
Marcel Ziwica
I can observe your considering. Possibly two matters, one is when it comes to internet working capital. We can have a constructive affect or we already had now as a result of I discussed the EUR 25 million improve briefly on the steadiness sheet date. This we already diminished. So there’s a constructive influx.
And the second level is within the EUR 150 million, the earnout of the Swiss enterprise is already included.
Sebastian Vogel
Excellent. That may really put me to my final query. If you happen to might type of spend a few phrases on these EUR 150 million, what is definitely all in there? Let’s put that charges present monetary property, if I am not mistaken, I did not discovered type of a composition of that one within the annual report. And so I’ve a greater understanding what’s in there, for those who can break it into items, that might be useful.
Marcel Ziwica
Our money place, then we’ve a money deposit as I stated, after which it is the earnout, completely [indiscernible].
Sebastian Vogel
Received it. So in that sense [the earnout] minus the money equals to basically the deposit?
Marcel Ziwica
Sure, appropriate.
Operator
The following query comes from Urs Kunz from Analysis Companions.
Urs Kunz
I’ve additionally a number of questions. First query on the outlook. This a part of minus EUR 35 million, so on the decrease finish, minus EUR 35 million of EBITDA. Am I appropriate that it will be type of the case if gross sales of Rx will not rise in any respect this yr and the advertising and marketing marketing campaign might be EUR 35 million in for Rx? After which perhaps you may give just a little bit the trace of the way you get to the EUR 0 million EBITDA line.
How a lot Rx gross sales would that suggest? Then on the highest line development of plus 10%, which I feel that is barely conservative, I see it 10% plus. However alone on the OTC aspect, that is the — for those who simply carry on the operating price for This autumn 2023, you’ll have already on the OTC Germany aspect, a development of roughly 12% for this yr in euro. Possibly you’ll be able to elaborate just a little bit on OTC Germany, what do you anticipate this yr? How a lot development you anticipate there?
And am I appropriate within the advertising and marketing finances for this yr, you’ll be able to’t give us an actual determine as a result of it is dependent upon how issues evolve on the Rx however are you able to give us at the least type of a spread in what sort of advertising and marketing finances you are enthusiastic about for 2024?
Marcel Ziwica
Sure, perhaps beginning with the final one. On our base case, we’ve a marketing-based advertising and marketing method, and we see advertising and marketing spend for eScript between EUR 20 million and EUR 30 million and we’d like, after all, the flexibleness to steer this actually on the achieved milestones in the course of the yr. And with this, to your first query in regards to the state of affairs of the minus EUR 35 million, as your considering is appropriate, we spend all of the advertising and marketing and there may be much less of few contribution out of extra gross sales, given additionally that the bottom enterprise is in keeping with expectation, it will result in this roughly minus 35 million. And however, if it is extra like in Sweden the place we don’t want any advertising and marketing spendings to get extra new Rx clients, then we are going to method the impartial EBITDA line.
Then the opposite query was in regards to the development of the OTC enterprise. Our general steerage is that we go above 10%, together with Rx. You talked about development price of OTC within the fourth quarter final yr, there is essential to see the comparability in earlier yr, and this was fairly low and can improve in the course of the yr, 2024. Subsequently, we see the OTC goes beneath the expansion we’ve proven within the final quarter.
Urs Kunz
Possibly again to the OTC development in — even when I tackle the Q3 of OTC in Germany and multiply that by 4, I get a development price of greater than 10% for 2024. So is it appropriate that — that is the minimal you’ll additionally anticipate?
Marcel Ziwica
Our assumption is that we’ll develop our OTC enterprise in keeping with market growth. And on this base steerage of greater than 10%. Our assumption is excessive single-digit OTC development. And the main focus nonetheless is on the breakeven for our base enterprise additionally in 2024.
Operator
And the subsequent query comes from [indiscernible] from HSBC.
Unidentified Analyst
One for me, please. I am asking them on behalf of Christopher Johne. So my query is on the CardLink. Are you able to first — the Gematik remark that Carling might be non permanent in nature. And in relation to that, I imply, does it matter that how preferential is CardLink is in your view versus the digital well being ID?
Walter Hess
Sure. So thanks for that query. Sure. So CardLink has now been — the specification has been printed. As stated, we’ve handed within the certification, that approval for certification.
And the date which has been communicated with March 2026 refers to a partial software program piece inside CardLink referred to as VSDM, so it is a connection to VSDM. And this must be changed by March 26 by Gematik to a software program piece referred to as POPP. So they don’t seem to be prepared but. They’ll change it. And that is even within the written within the regulation.
And that counts not just for CardLink, however for all eGK associated options additionally within the native pharmacy. By then, this software program piece must be modified. And it is a step in direction of the digital identification as a result of, after all, the digital identification , this would be the ultimate and goal answer for the entire market. However till the digital identification is totally rolled out in Germany. It will take time, 2, 3, perhaps even 4 years.
And till the market is there, it’s wanted to make use of the eGK and it’s wanted for us to make use of the CardLink answer.
Operator
[Operator Instructions] The following query comes from Milan Koch from Deutsche Financial institution.
Milan Koch
I even have three if I’ll. The primary one is in the marketplace share within the QR code market. May you share some coloration in your market share inside the eRx market in Q1? You talked about that you’re again at your previous market shares however what precisely does this imply? After which secondly, on the physician reimbursement modifications, [indiscernible] planning to implement.
Do you have got any view on when this could possibly be authorized by the cupboard? And when do you anticipate this to be mentioned by the German parliament? After which lastly, I’ve to attempt my luck, on the NSC answer, you talked about you anticipate to launch shortly. Is it honest to imagine that you would be able to launch your options over the approaching 2 weeks? Or might it take a bit longer?
Walter Hess
Sure. So on the QR code and market share query. In order you already know, we — in the meanwhile, we actually have solely entry to e-prescriptions, that are printed out on the physician places of work or practices. And we — our estimate is that that is most 20%. And as of this quantity, this of — the share of the market, we’re, in the meantime, in March again on the market share, we had earlier than on the entire market with PRx, with the paper prescriptions.
So that is what we seek advice from. On the second query, it is referred to as the [Foreign Language]. Sorry for not translating it in English, however that is the official identify. And there, we anticipate and the Minister, the Well being Minister plans to publish a primary draft in April or Could newest, and he plans to place the regulation in power nonetheless this yr. So we anticipate that may be in finish of Q3 or perhaps in This autumn.
So that is what we see in the meanwhile.
And the third query was in regards to the launch of our CardLink answer, the timing. And sure, we anticipate it to be inside that vary inside a number of weeks, be it 2 weeks or 3 weeks. So we are going to see there may be additionally Easter the place folks take our trip, however it’s actually forward of us within the brief time period.
Operator
The following query comes from Noah Sven from Kepler Cheuvreux.
Unidentified Analyst
It is a theoretical query on how the CardLink really works. If I have been to go to a practitioner and I might get a prescription after which I might scan my card by way of. After which for some purpose, I might lose my digital well being card and somebody would decide it up, and he have been to scan it with the CardLink, what would he be capable to see? Would he be capable to see my earlier prescriptions? I imply, clearly, if I lose the cardboard, my delivery date and film might be accessible, however will even be my handle or earlier prescriptions be accessible?
Walter Hess
Sure. So to start with, there may be — we make a hyperlink between the cardboard, the cardholder and the account holder. And I might evaluate it to the scenario in native pharmacy. So for those who lose your well being card, somebody picks it up and walks into the native pharmacy. And simply reveals the cardboard that claims, “This is my brother, I just pick up now his prescriptions.
So there, you will see and hear the same information with CardLink, as you would see in a local pharmacy. And so it’s completely comparable, and it’s the same specification at the same process basically.
Operator
The next question comes from Michael Heider from Warburg Research.
Michael Heider
I have only one left, which is regarding the bonus on Rx. What is the situation there? Are you planning to give bonus also on eRx? Or is this simply for paper PRx orders?
Walter Hess
Well, basically, a fully digital redemption channel in combination with repeat script has really an outstanding customer experience and we think that this will be and has to be the driver for sales and for patients to redeem the prescriptions with DocMorris. But we have different loyalty programs also for different brands. And so the details, I’d just ask you to see on the website as everything is published there.
Operator
At the moment, there are no further questions. So I would hand over back to Mr. Hess.
Walter Hess
Yes. Okay. Thanks a lot to all of you. Thank you for taking your time. For us, it is really, and I hope also for you a special moment.
And this tipping point is really exceptional, and we worked many, many years to come to that point. And as said before, up to now, regulatory and also approved technologies were more pre-tenders for our business, and they change now. And they will not block us anymore but they will even help. And this is what we worked for a very long time. And now it’s really time to execute, and I can just guarantee you all the DocMorris team is extremely motivated and engaged to do so.
And due to this fact, sure, we’re trying ahead to seeing you quickly on the street. And sure, I want you a really good day. Thanks loads to all of you.
