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March 10, 2023
Health Law Weekly

California Pulls $54 Million Contract with Walgreens Following Its Decision Not to Dispense Abortion Drugs in Certain States

  • March 10, 2023

California will not renew a $54 million dollar contract with Walgreens, following the company’s decision not to dispense the abortion medication mifepristone in 21 states, California Governor Gavin Newsom said March 8.

Walgreens, along with CVS, originally announced its intention to dispense mifepristone and misoprostol in its stores after the Food and Drug Administration moved in January to expand access to abortion pills with a regulatory change that allows certified retail pharmacies to sell the drug directly to patients.

Following that announcement, GOP governors pressured the company not to dispense the drugs. Walgreens subsequently said it would only dispense the drugs in certain states “where it is legally permissible to do so.”

“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.”

The state gave formal notice that it would withdraw a planned renewal of the Walgreens agreement set to take effect on May 1, 2023, and instead will explore other options for furnishing the same services.

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