What happens when the contracted generic supplier runs out of product? Or when there is no incentive to produce a drug and no response to the call for tenders? These would appear to be the major risks in the tendering approach, but it's not the province but the consumer who will be faced with side effects of the no drug for you to-day problem. Still, if the approach has been tried and proven elsewhere without running into these  sorts of problems, it's worth a try. 

The article mentions  kickback to pharmacists. Taxable income only if declared? Legitimate expense for tax purposes to the drug company? The Shadow knows. The rest of us wonder what is really going on. Secret commissions to send your kids through university? Porches in your pharmacist's driveway? Surely not.