Systems and Methods for Resource Allocation in Late-Stage Drug Development

Abstract

Problem: The pharmaceutical industry is characterised by high uncertainty, resource scarcities and strict time and quality constraints, making resource allocation in multi-project environments particularly complex. This is distinctly critical in late-stage drug development, where heightened regulatory requirements and unpredictable results intensify coordination challenges.

Aim: This study aims to investigate how effective resource allocation is conducted under the constraints of late-stage drug development in the pharmaceutical industry and how its effectiveness can be improved.

Theoretical Framework: A theoretical framework was established for the study and was based on previous literature related to the characteristics of late-stage drug development, decision levels, governance, organisational alignment, and allocation methods.

Method: A qualitative single-case study was applied to the thesis, consisting of a literature study and an interview study. This was done in order to examine how theoretical approaches are applied in practice and which decision parameters shape allocation behaviour within AstraZeneca, a global pharmaceutical company. The literature study was conducted to establish a theoretical base for the analysis of resource allocation in late-stage drug development. The interview study provided empirical data from employees at AstraZeneca working in various roles related to the focus area of the study.

Results and Implications: The findings confirm that resource allocation in multi-project environments and late-stage development are shaped by high uncertainty, structural constraints, and reliance on managerial judgement. Uncertainty limits optimisation at operational and tactical levels, causing decision-making to rely on heuristic and experience-based judgement under time constraints and incomplete information. Consequently, resource allocation becomes reactive and requires continuous re-prioritisation across projects. The study also identifies a gap between formal systems and enacted practices, where informal coordination compensates for limited local flexibility and fragmented decision-support systems. This suggests that, rather than attempting to eliminate uncertainty and reactivity, organisations within late-stage drug development should enable more integrated decision-making tools, implement information-sharing structures for managerial knowledge, and balance governance structures with local flexibility.