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Amazon.com Inc is considering entering the prescription drug sales market in Japan, the Nikkei newspaper reported on Monday.

Amazon plans to partner with small- and mid-sized pharmacies for the service, starting next year when electronic prescriptions are allowed for the first time in Japan, Nikkei said, citing people involved in the project.

Prescription drug prices in Japan are set by the government, while the distribution system is highly fragmented, with 70 wholesalers nationwide and almost 60,000 pharmacies.

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