OBJECTIVES: Nonsteroidal antiinflammatory drugs (NSAIDs) plus a proton pump inhibitor (PPI) are in widespread use for rheumatic diseases in Algeria, but can cause peptic ulcers and gastrointestinal bleeding and perforation. The National Institute for Health and Clinical Excellence (NICE) health economic model for assessing the cost-effectiveness of celecoxib compared to multiple NSAIDS+PPI in the treatment of osteoarthritis has been updated using new adverse event (AE) risks from the CONDOR trial.  In light of this new information, this study aimed to evaluate the incremental cost-effectiveness ratio (ICER) of celecoxib compared to different NSAIDS +PPI. METHODS:  The NICE model was adapted for this study to update the relative risks of adverse events; using data from the CONDOR trial for patients above 65yrs. Patients could initiate treatment with celecoxib, NSAIDs (diclofenac, naproxen, ibuprofen) plus omeprazole. Conditional probabilities of the model were obtained from published clinical trials and effectiveness measure was the Quality-Adjusted life years gained (QALY). The analysis was conducted from the healthcare payer’s perspective. Resource use and costs were obtained from official Algerian databases. Probabilistic sensitivity analysis (PSA) was performed and acceptability curves were constructed. RESULTS: Celecoxib showed on the six-months period lower expected costs per patient (US$422.84) compared to naproxen+PPI (US$445.79) and ibuprofen+PPI (US$775.11). The lowest expected costs resulted for diclofenac+PPI (US$257.10). On the other hand, celecoxib was associated with higher effectiveness (0.398 QALYs), followed by ibuprofen+PPI (0.393 QALYs) and naproxen+PPI (0.392 QALYs). Likewise, celecoxib has an ICER of US$343.81 per QALY compared to diclofenac which is below 1 GDP per capita for Algeria (US$7,300). Acceptability curves showed the same results with a mean of 65.5% of certainty. CONCLUSIONS: (DISCUSSION): The results suggest that when new AE risks are used, celecoxib remains a cost-effective treatment for OA when compared to diclofenac plus a PPI and cost-saving when compared to naproxen+PPI or ibuprofen+PPI.