Not an entirely bad idea, but it has one fatal flaw: What one hand gives, the other can take away. It could be passed one year, only to be underfunded the next.
What is needed is something more akin to the US Postal Service, US Federal Reserve, or other government charters. Get the ball rolling with some funding under a charter, but otherwise make it self sufficient. All profits to be used for research and development of generics that meet certain criteria. Allow bonds to be sold for development of specific drugs to allow the public to contribute funding. Sever as many financial ties to the government as possible. Make it hard to kill.
