OBJECTIVES: To evaluate direct costs of the use of insulin degludec (IDeg) in comparison to insulin glargine U100 (IGlar) in the treatment of Type 1 Diabetes Mellitus patients in a basal-bolus regimen (T1DM_B/B) in the Brazilian public healthcare system. METHODS: A one-year short-term model was developed to evaluate direct costs associated with the treatment of T1DM. The model measures resource use of insulins, needles, and the frequencies of hypoglycaemic events, use of blood glucose test strips and routine medical appointments for patients in treatment with IDeg and IGlar. Insulin dosing was derived from a meta-analysis of randomized clinical trials  showing that IDeg were associated with 12% overall reduction in use of insulin compared to IGlar in T1DM patients. Rates of hypoglycaemia were also derived from a meta-analysis of randomized clinical trials. Unit costs were derived from official pricing and procedures reimbursement lists from the public healthcare perspective (i.e. CMED, BPS and SIGTAP). Costs presented in BRL/USD ($1.00USD-3.93BRL). Univariate deterministic sensitivity analysis was performed to assess robustness of results RESULTS: Annual treatment costs were BRL5,116.31 (USD1,299.97) and BRL5,381.42 (USD1,367.33) for patients with T1DM_B/B treated with IDeg and IGlar, respectively. IDeg was associated with an annual cost reduction of BRL265.11 (USD67.36) per patientcompared to IGlar (~5% of annual cost per patient). Main parameters driving this reduction were less use of insulin, needles and lower frequency of hypoglycaemic events. Alternative scenario comparing only cost of insulins showed annual savings of BRL220.69 (USD56.07) per patient with IDeg compared to IGlar. Sensitivity analysis confirmed the findings. CONCLUSIONS: The introduction of IDeg in the Brazilian public healthcare system for patients with T1DM is associated with potential cost savings when compared to IGlar. Budget-holders can either save resources or attend more patients by migrating patients with T1DM to IDeg bringing economic value to the system.