What does it mean for CA to cut ties with Walgreens? Here's what Newsom announced

SACRAMENTO, Cailf. (KFSN) -- Gov. Gavin Newsom's office released some details Wednesday on what it means for California to break ties with Walgreens.

Newsom announced the state is pulling back its renewal of a multi-million dollar contract with Walgreens.

This comes after the company's decision not to dispense the abortion medication Mifepristone in 21 states, including states where 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 state is not renewing the contract - worth about $54 million - that allows California to buy prescription drugs from Walgreens for use mostly by the Department of Corrections and its correctional health care system.

DGS gave formal notice that it is withdrawing a planned renewal of that agreement set to take effect on May 1, 2023.

Walgreens has received about $54 million from the state under this contract.