Matsumotokiyoshi, Nihon Chouzai may end talks-source

TOKYO, Sept 15 (Reuters) - Japan's biggest drug store chain Matsumotokiyoshi Holdings (3088.T) is likely to end tie-up talks with pharmacy operator Nihon Chouzai (3341.T) because it now expects to expand its prescription drug business without the partnership, a source said.

Matsumotokiyoshi, which runs about 980 drug stores, agreed with Nihon Chouzai last year to team up in opening stores that sell prescription drugs, which can only be dispensed by licensed pharmacists.

A deal would have given Nihon Chouzai, which also makes generic drugs, a much bigger sales channel for its drugs.

But Matsumotokiyoshi has found that it can now secure pharmacists more readily than before, said the source familiar with the matter, who declined to be identified because the matter has not been made public yet.

A spokesman for Matsumotokiyoshi declined to comment and a Nihon Chouzai spokesman said nothing has been decided. (Reporting by Taiga Uranaka and Ritsuko Shimizu)