I'm not sure it's viable for most non-profits. They don't usually understand how expensive and complicated it is to get a new drug approved. Most models have the non-profit funding basic research and driving patients to clinical trials. Others try to get some ownership of IP so they can generate a revenue stream for the non-profit. The only advantage a non-profit has over pharma is the ability to connect with patients for trials. No intelligent drug developer excludes patient advocacy groups from their trial recruitment process, however, so even that advantage is minimal.
Non-profits will try this route if they believe drug companies are not interested in bringing candidates forward because teh disease is "too small" to deal with. I'm not sure I can think of an example where this has worked when it's a small non-profit. They're usually better off cajoling the pharma into doing something.
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