Engagements › Pinewood Street Pharma › Benchmarking: Purchase of finished medicines
Benchmarking: Purchase of finished medicines
Tested party: Pinewood Street Pharma Cyprus Ltd. Method: TNMM, operating margin (what is TNMM?). Profit level indicator: Operating margin (operating profit over sales), weighted over 2023–2025. Policy target 2.00%.
Comparables accepted or rejected, the range, the tested party against it.
The Search
Database and search date: to be recorded. The steps the search took are not on file; what the comparables set shows:
| Companies in the set | 12 |
|---|---|
| Flagged for rejection by the screening | 1 |
| Accepted by a person | 10 |
| Rejected by a person | 1 |
| Undecided | 1 |
The tested party against the range
Pinewood Street Pharma Cyprus Ltd earned -0.80% in 2025. The range is 1.59% to 2.64%. The result is below the range.
The contract first. The agreement's target is 2.00% (Distribution agreement, Pharma Cyprus Ltd). A true-up to the target — about €305,200 upwards — brings the result inside the range, and is the first fix: before the books close, by invoice; after, as an adjustment in the return.
Bringing it to the median (2.52%) would be an adjustment of about €362,046 upwards. Whether to adjust to the median or to the edge of the range, and how Cyprus practice treats it, is to be confirmed by the practice. See OECD 3.57, 3.60 (paragraphs 3.60–3.62).
One year's result is set against a multi-year range. Base for any adjustment: €10,900,000 — Trial balance: sales of Pharma Cyprus Ltd (Trial balance, Pharma Cyprus Ltd).
The Range, by Each Quartile Definition
| Definition | Companies | Lower quartile | Median | Upper quartile | Tested Party | |
|---|---|---|---|---|---|---|
| Inclusive (linear, n−1) Position p·(n−1) counted from zero, interpolated between neighbours. The spreadsheet function QUARTILE.INC. | 10 | 1.59% | 2.52% | 2.64% | Below by 2.39 pts | Used by this study |
| Exclusive (linear, n+1) Position p·(n+1) counted from one, interpolated; the quartiles fall outside the extremes for a small set. The spreadsheet function QUARTILE.EXC. | 10 | 1.44% | 2.52% | 2.69% | Below by 2.24 pts | |
| Nearest rank (for an even count, the median is the lower middle value) The value at rank ⌈p·n⌉; no interpolation, so every quartile is one of the observations. For an even count the median is the lower of the two middle values. | 10 | 1.49% | 2.51% | 2.66% | Below by 2.29 pts |
The interquartile range: OECD 3.57, 3.60. Which definition the practice uses, and the Tax Department's view: Practice policy · to be confirmed by the practice.
The Comparables
10 accepted, 1 rejected, 1 undecided.
| Company | Activity | 2023 | 2024 | 2025 | Weighted | Screening Suggestion | Decision |
|---|---|---|---|---|---|---|---|
| Ashgrove Pharma Wholesale Ltd GB | Wholesale distribution of prescription medicines | 3.12% | 2.20% | 2.66% | 2.59% | Suggestion Accept Meets the search strategy: Business description: "Wholesale distribution of prescription medicines"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Bramcote Healthcare Distribution S.A. ES | Pharmaceutical wholesale to pharmacies and hospitals | 3.18% | 1.96% | 2.78% | 2.76% | Suggestion Accept Meets the search strategy: Business description: "Pharmaceutical wholesale to pharmacies and hospitals"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Calderwood Medical Supply S.r.l. IT | Distribution of medicines under licence from manufacturers | 2.88% | -3.49% | 2.89% | 0.08% | Suggestion Accept Meets the search strategy: Business description: "Distribution of medicines under licence from manufacturers"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Dunsford Pharma Logistics B.V. NL | Pre-wholesale and distribution of prescription medicines | 1.48% | 1.65% | 2.85% | 1.88% | Suggestion Accept Meets the search strategy: Business description: "Pre-wholesale and distribution of prescription medicines"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Eskdale Pharmaceutical Distributors Ltd IE | Wholesale of medicines and medical devices | 3.20% | 2.55% | 2.52% | 2.73% | Suggestion Accept Meets the search strategy: Business description: "Wholesale of medicines and medical devices"; independent; profitable in at least 2 of 3 years. | Undecided |
| Fairlie Healthcare Wholesale Sp. z o.o. PL | Distribution of prescription and OTC medicines | 1.47% | 1.20% | 2.06% | 1.49% | Suggestion Accept Meets the search strategy: Business description: "Distribution of prescription and OTC medicines"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Gatehouse Pharma Trade AB SE | Wholesale distribution of medicines | 1.75% | 2.32% | 3.59% | 2.66% | Suggestion Accept Meets the search strategy: Business description: "Wholesale distribution of medicines"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Hollins Medical Distribution NV BE · not independent | Distribution for a larger group (subsidiary) | 2.60% | 1.26% | 3.80% | 2.88% | Suggestion Reject Not independent: Database field "Independence indicator": a shareholder holds 25% or more of the capital — the search strategy's cut-off, matching the 25% connected-person test. | Rejected As suggested · Niki Papas |
| Ilkley Pharma Supply S.A. GR | Wholesale of medicines to pharmacies | 1.35% | 3.15% | 3.67% | 2.98% | Suggestion Accept Meets the search strategy: Business description: "Wholesale of medicines to pharmacies"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Jedburgh Pharmaceutical Services Oy FI | Pharmaceutical wholesale and logistics | 2.92% | 3.60% | 1.60% | 2.53% | Suggestion Accept Meets the search strategy: Business description: "Pharmaceutical wholesale and logistics"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Kelso Clinical Supplies Ltd CY | Distribution of hospital medicines under tender | 1.24% | 1.72% | 3.16% | 2.51% | Suggestion Accept Meets the search strategy: Business description: "Distribution of hospital medicines under tender"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
| Lindisfarne Pharma Distribution GmbH AT | Wholesale of prescription medicines | 1.16% | 1.04% | 1.47% | 1.27% | Suggestion Accept Meets the search strategy: Business description: "Wholesale of prescription medicines"; independent; profitable in at least 2 of 3 years. | Accepted As suggested · Niki Papas |
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