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Newsom pulls multimillion-dollar contract with Walgreens after company's abortion pill decision

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CBS News Los Angeles Live

After shunning the pharmacy company over their decision to not sell an abortion pill in nearly two dozen states, Califorina Gov. Gavin Newsom has pulled the renewal of a multimillion-dollar contract with Walgreens. 

California Gov. Newsom Announces New Water Supply Actions Due To Climate Change
ANTIOCH, CALIFORNIA - AUGUST 11: California Gov. Gavin Newsom speaks to reporters during a visit the Antioch Water Treatment Plant on August 11, 2022 in Antioch, California. California Gov. Gavin Newsom visited a desalination plant that is under construction at the Antioch Water Treatment Plant where he announced water supply actions that the state is taking to adapt to hotter, drier conditions caused by climate change. / Getty Images

"California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom," said 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 move comes after Walgreens said it would stop distributing one of the most popular abortion pills in the country in 21 states, including states where abortion remains legal, according to the governor's office. 

The company decided to restrict the sale of mifepristone, which is used in more than half of all abortions performed in the United States after Republican attorneys in 20 states threatened legal action if they continued to sell the pill.  

"We want to be very clear about what our position has always been: Walgreens plans to dispense Mifepristone in any jurisdiction where it is legally permissible to do so," the company said in a statement. 

Walgreens added that it would continue distributing the drug in accordance with federal and state laws after getting approval from the Food and Drug Administration. 

"Providing legally approved medications to patients is what pharmacies do, and is rooted in our commitment to the communities in which we operate," the company said in a statement. 

According to the governor's office, the contract will expire on May 1 opting to "explore other options for furnishing the same services." 

The contract allowed the state to produce prescription drugs primarily used in California prisons and the correction health care system. The state contracted Walgreens for $54 million. 

Walgreens released a follow-up statement Thursday to KCAL News:

"We are deeply disappointed by the decision by the state of California not to renew our longstanding contract due to false and misleading information.  

"Walgreens is facing the same circumstances as all retail pharmacies, and no other retail pharmacies have said that they would approach this situation differently, so it's unclear where this contract would now 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. 

"We will dispense this medication consistent with federal and state laws. Providing legally approved medications to patients is what pharmacies do, and is rooted in our commitment to the communities in which we operate."

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