ABSTRACTFinding an adequate dose of the drug by revealing the dose–response relationship is very crucial and a challenging problem in the clinical development. The main concerns in dose‐finding study are to identify a minimum effective dose (MED) in anesthesia studies and maximum tolerated dose (MTD) in oncology clinical trials. For the estimation of MED and MTD, we propose two modifications of Firth's logistic regression using reparametrization, called reparametrized Firth's logistic regression (rFLR) and ridge‐penalized reparametrized Firth's logistic regression (RrFLR). The proposed methods are designed by directly reducing the small‐sample bias of the maximum likelihood estimate for the parameter of interest. In addition, we develop a method on how to construct confidence intervals for rFLR and RrFLR using profile penalized likelihood. In the up‐and‐down biased‐coin design, numerical studies confirm the superior performance of the proposed methods in terms of the mean squared error, bias, and coverage accuracy of confidence intervals.