Hi All,
Paula, a quick reply to your question regarding not-for-profit organizations that are into drug development. Oneworld health, based in San Francisco has successfully accomplished this dream. Their focus is rather different than what we are talking about, but I dont see why their model cannot be used for other drugs. Take look at their web site.
May be this could be our next project!!

Girija
http://www.oneworldhealth.org/

Core Strengths

OneWorld Health is the first nonprofit pharmaceutical company in the United States. We are a Medical Research Organization which advances global health by developing effective and affordable new medicines for infectious diseases that disproportionately affect people in the developing world.

OneWorld Health's core capacities lie in pharmaceutical product development. Our scientific expertise extends from drug lead identification and optimization to conducting clinical trials and securing regulatory approval of new medicines for patients in the developing world. Our scientific efforts are guided by a mission that ensures our products are safe, effective and affordable for the populations we serve.

In collaboration with hospitals in the US and abroad, OneWorld Health fills the huge gap in the development of new medicines – that is, bringing promising drug research from the lab into the clinic and onto regulatory approval and manufacturing................................

Girija