California Governor Halts $54m Contract with Walgreens

California is cutting its ties with Walgreens. California Governor Gavin Newsom withdrew a $54m contract with Walgreens. 

It came after the pharmacy giant indicated it would not sell an abortion pill by mail in some conservative-led states.

Walgreens has come under fire for saying it would not distribute the abortion pill in nearly two dozen red states threatening legal action, including some where medication abortion remains legal. 

So on Wednesday, California Gov. Gavin Newsom withdrew a massive $54 million contract with the giant company.

“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” Newsom said in a news release. 

“California is on track to be the fourth largest economy in the world and we will leverage our market power to defend the right to choose.”

Newsom ordered state officials to not renew a contract with Walgreens to purchase specialty pharmacy prescription drugs for California’s prison healthcare system, including antiviral and antifungal drugs and medication used for congestive heart failure. 

Walgreens has received about $54m from the contract, which expires on April 30.

The decision comes as the governor and lawmakers have taken broad measures in recent months to ensure abortion is available in California and to make the state a place where people from elsewhere can get the procedure following the June ruling by the Supreme Court to overturn Roe v. Wade.

After the Supreme Court last year overturned the federal right to an abortion, more than a dozen states restricted the use of abortion pills. But those restrictions are being challenged in court.

Attorneys general in 20 states, mostly with Republican governors, have warned Walgreens and CVS that the companies could face legal consequences if they sell abortion pills in their states. 

Last week, Walgreens confirmed it sent a response to each attorney general saying it would not dispense the drug in their states.

Be the first to comment

Leave a Reply

Your email address will not be published.