Skip to main content
Collapse Menu
Moren Lévesque

Lazaridis Institute welcomes Moren Lévesque

Moren Lévesque, Lazaridis Visiting Chair, is returning to visit the Lazaridis Institute this April and May.

Moren is Professor of Operations Management and Information Systems at the Schulich School of Business at York University (Toronto). She also holds the CPA Ontario Chair in International Entrepreneurship and is Co-director of Entrepreneurial Studies at Schulich.

Her research seminar will be held Friday, 26 April (1–3 p.m.) in LH 4114, studying the issues at the interface of exploration and exploitation strategies.

Discovery vs. repositioning: An empirical study of time allocation contingencies in drug development
AM Subramanian, National University of Singapore
M Lévesque, York University,
V Van De Vrande, Rotterdam School of Management

The biotechnology and pharmaceutical industry plays an important role in many economies, especially those with an aging population. The industry employs two approaches in bringing drugs to market. The first is to engage in new drug discovery and development from scratch, which goes through highly regulated stages fraught with failure, uncertainty and massive expenses. The second approach called “drug repositioning” or “exploitation,” repurposes a previously approved and launched drug by identifying new therapeutic applications. Though drug repositioning generally takes half the time and requires one-third the costs of new drug development, firms must give equal consideration to both approaches to maintain an effective and efficient drug portfolio. Yet, little is known about how firms can optimally invest time across these two competing approaches.

Drawing insights from the exploration-exploitation literature, our study addresses this gap by formally modeling and empirically testing how firms operating in the industry can develop and maintain an optimal balance across the two approaches. Our findings, based on 1,382 drug discovery and development projects, not only highlight the challenges that firms face in striking a balance, but also suggest that an optimal exploration-exploitation balance warrants careful consideration of project- and firm-specific characteristics. The findings have important implications for the industry, which is undergoing tremendous transformation, particularly in terms of automation. The results also contribute to the ambidexterity literature that typically assumes a 50-50 optimal exploration-exploitation balance.

Unknown Spif - $key