(Reuters) -Latin American e-commerce firm MercadoLibre ( MELI ) will test the waters for online pharmaceutical sales through its newly acquired drugstore in Brazil, the company's local head said on Thursday, a first step in entering the country's multi-billion-dollar online medicine market.

In a call with journalists, executive Fernando Lunes added the firm is also talking with Brazilian authorities to update the country's regulation for the pharmaceutical sector, which, according to him, creates operational challenges.