Not sure I'd agree there. In the west, even mundane drugs that don't need all that R&D, like common painkillers, antibiotics, vitamins, etc. are expensive. I think the issue in the west stems from regulations that make it difficult for new players to penetrate the market, even for generics. Running a cartel becomes easier that way.
Compare [1] and [2].
[1] http://www.walgreens.com/store/c/tylenol/ID=957-brand
[2] http://www.medindia.net/drug-price/acetaminophen/crocin-500m...