Newsom formally withdraws California from state contract with Walgreens

California Gov. Gavin Newsom (D) is officially canceling a $54 million state contract renewal with Walgreens after the retail giant said it would stop supplying abortion pills in 21 states.

Newsom, who on Tuesday criticized the company for its decision, saying California would no longer do business with Walgreens, announced that he would not renew his contract with the company to make prescription drugs for the state. The contract expires in May.

“California will not stand by while corporations give in to extremists and cut off critical access to reproductive care and freedom,” Newsom said in a statement. “California is on track to become the world’s fourth largest economy and we will use our bargaining power to protect choice.”

Walgreens’ contract with the state allowed California to produce “special drugstore prescription drugs,” Newsom said, which were primarily used for the state’s correctional facilities.

But the agreement is expiring after Walgreens said last week it would not distribute mifepristone, a drug that is part of an abortion scheme, in 21 states where Republican officials threatened legal action against companies trying to distribute it. The threat from GOP officials comes from a number of Republican-led states that have been drastically restricting abortion since the fall of Roe v. Wade.

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Newsom attacks Walgreens from the left, tearing up a contract that gave the company about $54 million. Newsom also said he was ordering a review of all contracts between the state and Walgreens.

Newsom said the state will explore other options for maintaining the same services.

Walgreens did not immediately respond to a request for comment.

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