US annual spending on prescription drugs to reach $400 billion by 2020

Annual spending on prescription drugs in the U.S. will rise 22 percent over the next five years, reaching up to $400 billion in 2020, healthcare information company IMS Health Holdings estimates.

These projections take anticipated discounts, rebates and other price concessions into account, according to Reuters.

IMS sees an annual growth rate of 4 percent to 7 percent through 2020.

Using wholesale prices, U.S. spending on prescription medicines could rise by 46 percent to $640 billion in 2020, according to the report.

IMS' report found spending on prescription drugs in 2015 increased by 12.2 percent, reaching nearly $425 billion.

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