California Dishes Out Consequences to Walgreens

State will not renew $54M contract with pharmacy chain over abortion pill issue
By Evann Gastaldo,  Newser Staff
Posted Mar 9, 2023 12:12 AM CST
California Dishes Out Consequences to Walgreens
FILE - California Gov. Gavin Newsom speaks in Sacramento, Calif., Jan. 10, 2023.   (AP Photo/Jos? Luis Villegas, File)

Those consequences California Gov. Gavin Newsom promised have begun: The state will not renew a $54 million contract with Walgreens after the pharmacy chain decided to stop selling abortion pills by mail in 21 states. Newsom ordered state officials to withdraw the planned renewal of the contract for specialty pharmacy prescription drugs that are purchased for the state's prison health care system, and buy those drugs elsewhere, CNN reports. A Walgreens rep tells the AP California's reasoning is based on "false and misleading information," and adds that he's not sure where else California can turn for the drugs:

  • "Walgreens is facing the same circumstances as all retail pharmacies, and no other pharmacies have said that they would approach this situation differently, so it's unclear where this contract would not be moved. Our position has always been that, once we are certified by the FDA, Walgreens plans to dispense Mifepristone in any jurisdiction where it is legally permissible to do so, including the state of California."

Mifepristone is used in combination with another pill, misoprostol, to end pregnancies, and since Roe v. Wade was overturned by the Supreme Court, more than a dozen states have issued restrictions—which are currently being challenged in court—on the use of abortion pills. Walgreens' decision to stop dispensing the drug in 21 states, four of which still allow abortion, was in response to the attorneys general of those states warning pharmacy chains there would be legal consequences if abortion pills were distributed there. "California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” Newsom said. “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.” As the Washington Post puts it, CVS and Rite Aid have been "less specific" on the issue, saying only that they will dispense the pills where legally permitted.

(More Walgreens stories.)

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