OBJECTIVES: To assess the cost-effectiveness of CANA versus SITA in patients with T2DM inadequately controlled with metformin and sulfonylurea from the perspective of the Brazilian private healthcare system. METHODS: The validated Economics and Health Outcomes Model of T2DM (ECHO-T2DM) was used to estimate the cost-effectiveness of CANA 100 and 300 mg versus SITA 100 mg added to metformin and sulfonylurea over a 20-year horizon.  Patient characteristics were obtained from a pooled analysis of two CANA trials as add-on to metformin and sulfonylurea (DIA3002 and DIA3015).  Efficacy and adverse event inputs were sourced from DIA3002 for CANA 100 mg and from DIA3002/DIA3015 for CANA 300 mg and SITA.  Pharmaceutical costs were sourced from list prices; hospitalizations and resource use were from a medical claims database.  Outcomes and costs were discounted at 5%.  Sensitivity analyses were conducted that varied parameters relevant to the Brazilian setting, including using data from Latin American patients in CANA trials. RESULTS: CANA 100 and 300 mg were associated with QALY gains of 0.09 and 0.23 and mean cost increases of R$419 and R$2,965 relative to SITA.  Non-medication cost offsets were seen with CANA 100 and 300 mg versus SITA (9.9% and 12.1%).  CANA 100 and 300 mg were very cost-effective (<1 times the gross domestic product per capita; R$39,917 at August 13, 2015 exchange rate), with incremental cost-effectiveness ratios of R$4,603 and R$12,945 per QALY gained, respectively.  The cost-effectiveness of CANA versus SITA was robust to different specifications in the sensitivity analyses.  CONCLUSIONS: These results suggest that adding CANA 100 or 300 mg versus SITA in patients with T2DM inadequately controlled on metformin and sulfonylurea would be a more efficient use of healthcare resources in Brazil.