3 studies of primary data relevant to a pharmaeconomic analysis of clozapine in the treatment of schizophrenia are reviewed. Results suggest that clozapine as a treatment of neuroleptic-resistant schizophrenia leads to a better outcome & lower costs in treatment-resistant patients. Clozapine has been found to produce superior outcome compared with other neuroleptic drugs in neuroleptic-resistant patients in areas such as decreased psychopathology, improved cognition & decreased suicide attempts.