Optimizing Resource Allocation in Pharmaceuticals

A decision support tool was built for a Fortune 100 pharma firm to optimize resource use in pre-clinical drug development, prioritize high-potential candidates, adapt to changing success rates, and evaluate outsourcing options.
Written by
Vijay Hanagandi
Published on
May 14, 2025

Resource Allocation in a Pharmaceutical company 

Summary

A decision support application was developed for management and allocation of resources at the Safety Assessment division of a global Fortune 100 Pharmaceutical major. The application provides for quick analysis of the resources available, and their allocation to the development programs concerning the pre-clinical candidates in the pipeline. Since limited resources are available (e.g. animals needed for testing, lab personnel, biochemists etc.) there needs to be an optimal utilization of these resources such that the drug candidates with the highest potential for success are preferentially supported. A complicating factor is that the probability of success (POS) of each program is a dynamically changing factor that depends on a number of internal and external variables. The Planning Tool application developed by Optimal Solutions demonstrated that asset utilization can be predicted and optimized to maximize the number of pre-clinical candidates that can go through the development pipeline. The application also enables the company to study impacts of outsourcing. 

Business description & background

Safety Assessment studies are on the critical path for the drug approval process undergone by pharmaceutical companies. At any given time there are a large number of drugs or New Drug Applications (NDAs) in the pipeline, needing to be resourced. Generally, better management of drug portfolios and resources leads to higher profitability and more successful drug launches. The ability of a company to support development/testing programs is dependent on its ability to minimize the high cost (in terms of resources, money and time) of taking a drug to market. Optimal Solutions was approached by the Safety Assessment group of a pharma major with the objective of developing an application for efficient allocation of resources to the various development/testing programs and pre-clinical candidates under study. The following business aspects were relevant to this project: 

  1. Resources (manpower, laboratories and animals) are dispersed over several locations. 
  2. A large number of programs are being supported by the Safety Assessment group. 
  3. Frequently changing scenarios as programs are added, dropped or modified 
  4. Dynamically varying Probability of Success (POS) for the programs being supported. 
  5. Outsourcing of studies to be considered- depending on availability and cost of resources 
  6. Desire rapid scenario analysis and tweaks of critical analysis parameters 
  7. Leverage the company’s existing Oracle Database and OPX2 system (a proprietary third party resource/project management database application). 

There existed no comprehensive and automated way to predict the load on various organizational resources, given a pipeline under development and a scenario of future pre-clinical candidates’ deployment. There existed no automated way of allocating Safety Assessment resources to different programs based on probability of success or financial impact. As a result, there was no way to assess the impact of allocation decisions on the future success of these programs. 

The challenge

Optimal Solutions was charged with the task of delivering a Planning Tool that: 

  • Generates feasible allocations of resources to the various programs being supported 
  • Provides robust data interchange capabilities so as to allow frequent data updates that reflect the changing reality 
  • Provides a flexible and user-friendly interface 
  • Provides fast ‘What if’ scenario analysis for a customer-specified specific set of scenarios; 
  • Provides online help and detailed technical documentation 

The solution

The AIMMS platform that was used for developing the application boasts of class-leading GUI capabilities and an ability to interface with a variety industrial databases. The resulting application was test-driven using real data, and was successful in generating allocation plans under a variety of conditions. The user interface was designed to offer ease of use, and allow rapid tweaks to critical decision-making parameters that facilitate scenario analyses. 

The application also offers a convenient method for inputting and importing/exporting data. Detailed User and Technical manuals were provided in addition to an online help functionality.  The application also gives visibility to the end-users about data gaps and data inconsistencies and alerts them to data-maintenance activities. 

The benefits

As a result of installing the application, the planning capability of the Safety Assessment team was significantly improved over the existing, manual planning process. Resourcing of programs can now be made more effectively, aimed at maximizing the success of the drug pipeline within the company. Maintenance of the data was made simpler through the data interchange that could be accomplished from within the application. The Safety Assessment Planning Tool was delivered with built-in upgradability so that future modifications and linkages e.g. with a Portfolio Management/Optimization tool can be easily established. 

How OSI added value 

The Safety Assessment team gave good reviews to the application delivered by Optimal Solutions. A second phase of this project, wherein additional capabilities will be added, is already in the works. Some specific features of particular value were: 

  1. Powerful GUI capabilities and ability to represent Resource Allocations as dynamic charts with sliding timescales 
  2. Succession of pull-down menus to allow easy selection of specific resources, sites and programs being resourced- can slice/dice the data in a multitude of ways 
  3. Powerful data interchange capabilities, allowing easy access to updated information from external databases 
  4. Flexible application with the ability to easily change key inputs and objectives 
  5. Built-in upgradability to add more complex functionalities and link up with applications developed by other groups. 
  6. OSI’s high level of experience in managing large projects enabled a disperse team to remain focused and complete the project on time and on budget.

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Optimizing Resource Allocation in Pharmaceuticals

Vijay Hanagandi
May 16, 2025
2 minutes

Resource Allocation in a Pharmaceutical company 

Summary

A decision support application was developed for management and allocation of resources at the Safety Assessment division of a global Fortune 100 Pharmaceutical major. The application provides for quick analysis of the resources available, and their allocation to the development programs concerning the pre-clinical candidates in the pipeline. Since limited resources are available (e.g. animals needed for testing, lab personnel, biochemists etc.) there needs to be an optimal utilization of these resources such that the drug candidates with the highest potential for success are preferentially supported. A complicating factor is that the probability of success (POS) of each program is a dynamically changing factor that depends on a number of internal and external variables. The Planning Tool application developed by Optimal Solutions demonstrated that asset utilization can be predicted and optimized to maximize the number of pre-clinical candidates that can go through the development pipeline. The application also enables the company to study impacts of outsourcing. 

Business description & background

Safety Assessment studies are on the critical path for the drug approval process undergone by pharmaceutical companies. At any given time there are a large number of drugs or New Drug Applications (NDAs) in the pipeline, needing to be resourced. Generally, better management of drug portfolios and resources leads to higher profitability and more successful drug launches. The ability of a company to support development/testing programs is dependent on its ability to minimize the high cost (in terms of resources, money and time) of taking a drug to market. Optimal Solutions was approached by the Safety Assessment group of a pharma major with the objective of developing an application for efficient allocation of resources to the various development/testing programs and pre-clinical candidates under study. The following business aspects were relevant to this project: 

  1. Resources (manpower, laboratories and animals) are dispersed over several locations. 
  2. A large number of programs are being supported by the Safety Assessment group. 
  3. Frequently changing scenarios as programs are added, dropped or modified 
  4. Dynamically varying Probability of Success (POS) for the programs being supported. 
  5. Outsourcing of studies to be considered- depending on availability and cost of resources 
  6. Desire rapid scenario analysis and tweaks of critical analysis parameters 
  7. Leverage the company’s existing Oracle Database and OPX2 system (a proprietary third party resource/project management database application). 

There existed no comprehensive and automated way to predict the load on various organizational resources, given a pipeline under development and a scenario of future pre-clinical candidates’ deployment. There existed no automated way of allocating Safety Assessment resources to different programs based on probability of success or financial impact. As a result, there was no way to assess the impact of allocation decisions on the future success of these programs. 

The challenge

Optimal Solutions was charged with the task of delivering a Planning Tool that: 

  • Generates feasible allocations of resources to the various programs being supported 
  • Provides robust data interchange capabilities so as to allow frequent data updates that reflect the changing reality 
  • Provides a flexible and user-friendly interface 
  • Provides fast ‘What if’ scenario analysis for a customer-specified specific set of scenarios; 
  • Provides online help and detailed technical documentation 

The solution

The AIMMS platform that was used for developing the application boasts of class-leading GUI capabilities and an ability to interface with a variety industrial databases. The resulting application was test-driven using real data, and was successful in generating allocation plans under a variety of conditions. The user interface was designed to offer ease of use, and allow rapid tweaks to critical decision-making parameters that facilitate scenario analyses. 

The application also offers a convenient method for inputting and importing/exporting data. Detailed User and Technical manuals were provided in addition to an online help functionality.  The application also gives visibility to the end-users about data gaps and data inconsistencies and alerts them to data-maintenance activities. 

The benefits

As a result of installing the application, the planning capability of the Safety Assessment team was significantly improved over the existing, manual planning process. Resourcing of programs can now be made more effectively, aimed at maximizing the success of the drug pipeline within the company. Maintenance of the data was made simpler through the data interchange that could be accomplished from within the application. The Safety Assessment Planning Tool was delivered with built-in upgradability so that future modifications and linkages e.g. with a Portfolio Management/Optimization tool can be easily established. 

How OSI added value 

The Safety Assessment team gave good reviews to the application delivered by Optimal Solutions. A second phase of this project, wherein additional capabilities will be added, is already in the works. Some specific features of particular value were: 

  1. Powerful GUI capabilities and ability to represent Resource Allocations as dynamic charts with sliding timescales 
  2. Succession of pull-down menus to allow easy selection of specific resources, sites and programs being resourced- can slice/dice the data in a multitude of ways 
  3. Powerful data interchange capabilities, allowing easy access to updated information from external databases 
  4. Flexible application with the ability to easily change key inputs and objectives 
  5. Built-in upgradability to add more complex functionalities and link up with applications developed by other groups. 
  6. OSI’s high level of experience in managing large projects enabled a disperse team to remain focused and complete the project on time and on budget.

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casestudy
Pharmaceuticals
Vijay Hanagandi
May 16, 2025
2 minutes