OBJECTIVES: Previous research demonstrated that prices do not vary across countries based on macroeconomic variables. We present a framework comparing profits under differential pricing with homogenous pricing. METHODS: We developed a model based on monopolistic pricing theory to solve for a static efficiency solution. The demand curve for a given market, i, is Q=ai-biP, where Q is quantity and P is price. For a given market, factors that could influence the shape of our demand curve (parameters ai and bi) include purchasing power, burden of disease, drug access in other markets, completeness of the health system, income and wealth equality, ease of market access, and market stability. Given these factors, we show a theoretic solution for 2 markets (one “rich” and one “poor”) and compare the profits under our model versus a single global price system.  We assume the “rich” market (lower price elasticity) and “poor” (higher price elasticity) market have demand curves Q=2-0.1P and Q=2-0.5P, respectively. RESULTS: For i=1,2, the profit, π, from a single price is π=PQ-cQ=P(a1-b1P+a2-b2P)-c(a1-b1P+a2-b2P). The optimal price is then P=(a1+a2+c(b1+b2))/(2(b1+b2)). If the monopolistic firm does indeed price discriminate, the optimal price for market i would be Pi=(ai+cbi)/(2bi). Our findings indicate that the potential profit between a single price scenario and a price discriminating scenario increases as the elasticities bi vary. In our two market example, the single price (SP) model has a profit πSP=4.82 compared with a price discriminant (PD) model of profit πPD=10.15. Not only is πPD over twice the size of πSP, but in some cases the total output also increases, which results in welfare gain. CONCLUSIONS: The optimal pricing solution for pricing pharmaceuticals around the world implies prices should vary based on economic factors. This is not currently observed in practice, which results in lost rents.