OBJECTIVES: Olanzapine in fast dissolving orodispensable formulation (OOT) was shown to be associated with greater patient acceptance and improved medication adherence compared to olanzapine in conventional tablet form (OCT) in acute treatment settings. This study assessed, from a payer perspective, the cost and effectiveness of OOT compared to OCT over a 1-year period in the treatment of schizophrenia patients in Turkey. METHODS: Survival Curve Model was used to assess the dynamic effects of relapses and hospitalizations on direct cost of treatment by considering medication efficacy and patients' adherence to the medication. Rates of relapse and rates of treatment discontinuation - due to poor efficacy, medication intolerability, or patient preference/nonadherence - were based on published medical literature, unpublished data, and a clinical expert panel. The model assumed that treatment discontinuation is lower with OOT compared with OCT in stabilized schizophrenia patients. Model assumptions were validated by an independent expert panel. RESULTS: Based on model projections, the number of patients who would discontinue their current medication during one year of treatment would be 28 for OOT and 40 for OCT group. The number of predicted relapses was 15 for OOT and 18 for the OCT groups. Results indicate a 12% increase in the number of patients who would continue their therapy and 3% decrease in the number of relapses for the OOT group. The projected annual total direct cost for a cohort of 100 patients was 355.629,46 YTL for OOT treatment and 412.845,36 YTL for OCT treatment. If all patients were assumed to be treated with OOT treatment instead of OCT, 16% would be treated, without any additional cost to the payers in Turkey. CONCLUSIONS: The use of olanzapine in fast dissolving orodispensable formulation is predicted in this model to be more cost effective than olanzapine in conventional table form.