Gov. Newsom Announces California Won’t Do Business With Walgreens

California Governor Gavin Newsom announced on Monday that the state will no longer do business with the pharmacy chain Walgreens following their decision to no longer sell an abortion pill in 20 states after attorney generals from those states threatened legal action.

For the last several years, Walgreens got a little shaky in the Golden State. Waves of store closures in places like San Francisco due to crime were widely condemned due to many of the closures coming in places where it would otherwise be very hard for some people to get prescriptions and other necessities. But neither California nor the drug store chain did anything considered “extreme” to the other.

However, all that was soon to change following last years’ Supreme Court decision Dobbs v. Jackson Women’s Health Organization, which officially reversed Roe v. Wade and sent states scrambling over where they set the law at with abortion. While California quickly declared it is  an abortion sanctuary state and passed laws furthering abortion rights in the state, other states added restrictions against abortion. This included going after the sale of abortion medication at pharmacies.

Last month, attorneys general from 20 states that were in favor of more restrictions sent a letter to Walgreens warning them of legal action if they would continue to sell abortion medication in their stores or by mail in their respective states. After some initial confusion, Walgreens agreed to not sell abortion pills in Florida, Texas, Ohio, Georgia, and the 16 other states threatening to challenge them.

While the matter seemed to be settled, with Walgreens establishing the decision on what to sell based on local and state laws, the situation only furthered the ire of Governor Newsom. In a tweet slamming the company, Newsom announced on Monday, “California won’t be doing business with Walgreens or any company that cowers to the extremists and puts women’s lives at risk. We’re done.”

California won't be doing business with @walgreens — or any company that cowers to the extremists and puts women's lives at risk.

We're done.https://t.co/OB10cYfm8H

— Gavin Newsom (@GavinNewsom) March 6, 2023

Following confusion by many on what that exactly meant, Newsom’s office clarified later in the day, “California is reviewing all relationships between Walgreens and the state. We will not pursue business with companies that cave to right wing bullies pushing their extremist agenda or companies that put politics above the health of women and girls.”

In a return statement, Walgreens responded by saying that they would still be selling abortion medication where legal to do so once they are certified by the FDA.

“Walgreens said it plans to sell mifepristone in any jurisdiction where it is legally permissible to do so,” said the company on Monday. “Once we are certified by the FDA, we will dispense this medication consistent with federal and state laws.”

Confusion over what California not doing business with Walgreens means

However, Newsom left many wondering what the Governor had in mind with the state “being done” with the company and what it would mean for Walgreens in California going forward.

“Any state agreements between the state Government and Walgreens are probably going to be looked at right now, and any future business, like any contracts with them, are probably a no go at this point,” explained Roger Springer, a former executive with two companies that helped negotiate contracts with local and county governments, to the Globe on Monday. “For those of you thinking that he will order all Walgreens to order the state, relax, that cannot happen for dozens of reasons.”

“Same with, say, ordering state Medicare to not be accepted at Walgreens for, say, medication. If anything like that was declared, you’d have judges blocking it within 24 hours, as well as it being political suicide. But what will be reviewed are contracts and business dealings with Walgreens itself. Those are in danger, and can probably easily go to CVS.”

“And what people aren’t looking at is the effect on the company and Californians. Many in the state might stop shopping there out of solidarity with the Governor. A lot of stores here are already not eaxactly on the best ground, so many could be at risk. Likewise, Walgreens may decide it’s not worth keeping some under-performing stores open here and pull out, with Newsom’s announcement and it’s effects being the straw that broke the camel’s back.”

“But that’s speculation. Right now, all we know is that Newsom is now looking for ways to have the state stop doing business with Walgreens over the abortion pills. We’ll see exactly what that means and what Walgreens will do to prevent that from happening. Honestly, Walgreens was put between a rock and a hard place. And if other states join California, Walgreens may need to make a big decision on their business practices nationwide.”

More details on what the Governor said are expected soon.