Innovate or die. The German pharmacy landscape is undergoing a profound transformation. With increasing pressure from online platforms like dm and other like DocMorris, many local pharmacies are choosing to specialize in the growing cannabis market to secure their future.
Pharmacists like Frank Siepert are setting a strong example. His online pharmacy has seen substantial success since integrating medical cannabis into its offerings, dispensing 30 kilograms per month and generating a gross profit of €50,000. As Germany’s new cannabis legislation takes effect, the medical cannabis market is booming, offering local pharmacies a unique opportunity to thrive.
The threat from dm and Co.
dm announced today its intention to enter the market with its own mail-order pharmacy. The focus is on OTC (over-the-counter) medicines and pharmacy cosmetics. In the long term, dm plans to conquer the entire healthcare market – a scenario that could threaten the existence of small pharmacies. With its large logistics centers, digital infrastructure and financial resources, dm has the potential to become a game changer.
The last hope: specializing in niche markets
For local pharmacies, focusing on prescription drugs (Rx) and specializing in lucrative niches such as cannabis remains one of the few survival strategies. The case of pharmacist Frank Siepert shows how profitable the cannabis market can be: With a monthly turnover of 30 kilograms of medicinal cannabis, he generates a gross profit of around 50,000 euros. The German government’s new cannabis law is increasing demand, as more prescriptions are being issued.
Cannabis: the new gold rush for pharmacies
The medical cannabis market is booming. While recreational use is the focus of public attention, pharmacies specializing in medicinal cannabis are experiencing a real boom. Cannabis not only offers an opportunity to provide better care for patients, but also a lucrative business model.
However, many pharmacies have reservations or are unsure about how to enter this market. Specializing in cannabis offers a long-term perspective:
- Higher margins: compared to classic Rx drugs, cannabis offers attractive profit margins.
- Growing demand: With legalization and decriminalization, acceptance is increasing and with it demand.
- Innovative services: In addition to selling cannabis, pharmacies could offer advice, accessories such as vaporizers or special training for patients.The Helios case: a warning signal for the industry
The recent investigation surrounding the Helios pharmacy in Munich shows that the cannabis market also harbors risks. The pharmacy, which had been offering medicinal cannabis since April, was targeted by the public prosecutor’s office on suspicion of the unauthorized production of hashish. The incident illustrates how important it is to adhere to the legal requirements and act transparently.
Lessons from dm: Innovate or Perish
dm’s move to integrate over-the-counter (OTC) medications and health products into its e-commerce platform highlights the urgency for pharmacies to adapt. While dm focuses on scale and logistics, pharmacies have the advantage of trust and expertise. Leveraging these strengths in emerging markets like cannabis can provide a competitive edge.
