This study presents a simple model for comparing the direct costs of treating an acute episode of duodenal ulcer disease with either omeprazole or ranitidine. The model follows the protocol used in clinical trials. The variables are the healing probabilities for the different treatment strategies and the cost of drugs, hospital visits, endoscopy and treatment failures. The expected direct cost per treated patient is 29,200 pts (US $252.00) for omeprazole and 33,000 pts (US $285.00) for ranitidine. Drug costs alone are 7,200 pts (US $62.00) for omeprazole and 8,400 pts (US $72,00) for ranitidine. Omeprazole is a more cost-effective option than ranitidine for the acute treatment of duodenal ulcer.