California Governor Gavin Newsom said the state will stop doing business with Walgreens Boots Alliance Inc. after the drugstore chain moved to halt sales of abortion pills in 20 Republican-led states.
The Democratic governor directed the California Department of Health and Human Services to review all relationships Walgreens has with the state, including MediCal and Covered California, the states two largest public insurance plans, according to Newsoms spokesperson. The amount of business Californias state-funded insurance plans does with Walgreens isnt available, he said.
Last week, Walgreens said it wont sell the abortion pill mifepristone in 20 states following warnings by Republican attorneys general of legal action against the company as well as CVS Health Corp. The two retailers could face legal consequences if they mail and distribute abortion medication in those states.
While Walgreens said it will stop selling abortion pills in those states, CVS so far hasnt commented publicly.
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
Newsom is attempting to put pressure on companies to ignore threats from Republicans in the battle over abortion access in the wake of the Supreme Courts decision to overturn the 1973 Roe v. Wade ruling.
Hes increasingly wading into controversial issues as part of a campaign thats seen him burnishing his national profile ahead of the 2024 presidential campaign.
Although Newsom has repeatedly denied presidential aspirations, many Democrats view the governor as a potential contender for the Democratic nomination, should Joe Biden decide not to seek reelection.
Newsom said in a tweet Monday that the state would not work with any company that cowers to the extremists and puts womens lives at risk.
Shares of Walgreens dropped as much as 1.6% following Newsoms tweet, and were down 1.5% to $35.55 as of 2:48 p.m. in New York.
Walgreens didnt immediately respond to requests for comment.
Learn how to navigate and strengthen trust in your business with The Trust Factor, a weekly newsletter examining what leaders need to succeed. Sign up here.
