OBJECTIVES: To assess the long-term cost effectiveness of treatment with liraglutide on top of standard therapy with metformin (MET) compared with sulphonylurea (SU) in people with type 2 diabetes. METHODS: The extensively published and validated CORE Diabetes Model was populated with the clinical data from LEAD 2: liraglutide + MET vs. SU + MET. The analysis was performed from the polish 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 Polish official tariff lists for healthcare services paid by public payer. All figures are shown in EURO (1 EURO=3.9 PLN). RESULTS: QALYs increased with liraglutide 1.2 mg + MET vs. SU+ MET by 0.191. Total costs increased by €3,349 resulting in incremental costs per QALY of €17,565. The incremental cost effectiveness ratio for liraglutide 1.8 mg + MET vs. SU + MET was estimated at €24,842 per QALY gained (QALYs increased by 0.207). Sensitivity analysis showed the results to be moderately changing when altering the key parameters and assumptions (for liraglutide 1.2 mg range from 12,944 to €30,275/QALY). CONCLUSIONS: Treatment with liraglutide is a cost effective intervention compared with sulphonylurea and is likely to represent good value for money in Polish setting.