(KRON) — It’s official; as California Governor Gavin Newsom warned, the state has pulled back on its renewal of a “multi-million dollar” contract with pharmacy chain Walgreens, Newsom’s office announced on Wednesday.
The decision to pull back on the contract comes just days after Walgreens announced it would not dispense the abortion medication Mifepristone in 21 states, even somewhere abortion remains legal.
“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” said Governor 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 and Walgreens allows the state of California to buy specialty pharmacy prescription drugs, mainly used by the California Department of Corrections and Rehabilitation throughout it’s healthcare system, according to the press release.
On Wednesday, the governor’s office instructed the Department of General Services to withdraw the planned renewal of the agreement which was meant to take effect on May 1, 2023. The state now intends to explore other options to provide this service.
The loss of the contract could come with a hefty loss of funds, even for the pharmaceutical giant. So far under the contract Walgreens has received about $54 million from the state.