California will no longer renew a $54 million contract with Walgreens Boots Alliance Inc. following the drugstore chain's decision to stop dispensing abortion pills in several states, according to Governor Gavin Newsom.
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The action comes a day after the Democratic leader said California would stop doing business with the company. Last week, Walgreens said it won't sell the abortion pill mifepristone in at least 20 states following warnings by Republican state officials over legal action against the company, as well as CVS Health Corp., Albertsons, Rite Aid, Costco, Walmart and Kroger, which so far hasn't commented. The list of states includes those where abortion remains legal.
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"California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom," Newsom said in an emailed statement on Wednesday. "We will leverage our market power to defend the right to choose."
Renewal of the contract to procure specialty pharmacy prescriptions primarily for the correctional health-care system was set to take effect on May 1. The state will now explore other options for providing the same services, according to the statement.
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