Gov. Newsom: California Pulls Back Renewal of Walgreens Contract

SACRAMENTO — California is pulling back its renewal of a multi-million dollar contract with Walgreens, following the company’s preemptive decision not to dispense the abortion medication Mifepristone in 21 states, including states where abortion remains legal. On March 6, Gov. Newsom called for the review of all contracts between the State and Walgreens and the announcement is a result of that ongoing review.

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

The contract between the California Department of General Services or DGS and Walgreens allows the State to procure specialty pharmacy prescription drugs, primarily used by the California Department of Corrections and Rehabilitation or CDCR and its correctional health care system. At Gov. Newsom’s directive, March 8, DGS gave formal notice that it is withdrawing a planned renewal of that agreement set to take effect on May 1, 2023, and instead will explore other options for furnishing the same services. Under this contract, Walgreens has received about $54 million from the State.