Objective: Current treatment options for short children born small for gestational age (SGA) are limited; however, the growth hormone somatropin (Norditropin) has been shown to normalise height in childhood and adolescence compared to no treatment. The aim of this study was to establish whether somatropin (Norditropin) was a cost-effective treatment option for short children born SGA compared to no treatment. Methods: A decision tree model was used to calculate the relative costs and health benefits associated with somatropin (Norditropin) treatment vs no treatment over the lifetime of short children born SGA. The analysis was undertaken from a UK National Health Service (NHS) perspective; unit costs (GBP; 2007) were sourced from relevant UK health care providers. Clinical effectiveness data were taken from a long-term, multi-centre, double-blind, randomised clinical trial comparing the effects of somatropin (Norditropin) to no treatment. Utility data was derived from a recent UK-based study which assessed the relationship between short stature and HRQoL. Sensitivity analyses were conducted to assess the degree of uncertainty surrounding the data. Results: Over a patient's lifetime, somatropin (Norditropin) (0.033 mg/kg/day) was associated with an additional 2.74 quality-adjusted life years (QALYs) and an incremental cost of GBP73,545 compared with no treatment. As a result, somatropin (Norditropin) was associated with an incremental cost per QALY of GBP26,794 compared with no treatment. Probabilistic sensitivity analysis, in which all parameters within the model were varied, showed that there was a high probability that somatropin (Norditropin) was cost effective compared to no treatment, based on a willingness to pay threshold of GBP30,000 per QALY. Conclusion: Based on a willingness to pay threshold of GBP30,000 per QALY, somatropin (Norditropin) is a cost-effective treatment strategy for short children born SGA, providing substantial incremental health benefits at an additional cost.