€OBJECTIVES: To assess the long-term cost effectiveness of treatment with liraglutide on top of standard therapy with glimepiride (SU) compared with rosiglitazone in people with type 2 diabetes. METHODS: The extensively published and validated CORE Diabetes Model was populated with the clinical data from LEAD-1 trial: liraglutide + SU vs. rosiglitazone + SU. The analysis was performed from the Czech health care services payer’s perspective. A 20 year time horizon was chosen to reflect the costs and outcomes of diabetes as these are often only seen in the later stages of the disease.  The analysis used health state utility values from published sources to assess the effect of treatment on QALYs. The unit costs of treatment and complications were derived from published sources or based on expert opinion survey and official tariff lists for healthcare services paid by public payer (insurance company). All figures are shown in CZK and EUR (100 CZK=3.94 EUR). RESULTS: QALYs increased with liraglutide 1,2 mg + SU vs. SU + rosiglitazone 4 mg by 0.236. Total direct costs increased by CZK 45,679 (€1,800) resulting in incremental costs per QALY of CZK 193,468 (€7,623). The incremental cost effectiveness ratio for liraglutide 1.8 mg + SU vs. SU + rosiglitazone 4 mg was estimated at CZK 378,762 (€14,923) per QALY gained (QALYs increased by 0.270). Total costs (including indirect costs) increased by CZK 44,028 (€1,735) and CZK 100,301 (€3,952) resulting in an incremental cost per QALY gained of CZK 186,475 (€7,347) and CZK 371,188 (€14,624), respectively. CONCLUSIONS: Treatment with liraglutide added to a sulphonylurea is a cost effective intervention compared with adding rosiglitazone and is likely to represent good value for money in the Czech Republic setting.