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NEW YORK — The state of California will not renew a $54 million contract with Walgreens because of the chain’s decision to not dispense abortion pills in some states where abortion remains legal, Gov. Gavin Newsom’s (D) office announced this week.

Walgreens said that it would not be dispensing mifepristone — used in medication abortions — in some states where abortion remains legal in response to a letter from Republican attorneys general saying the pharmacy chain could face legal consequences for distributing the drug.

Walgreens responded to the Republican AGs’ letter “indicating we will not dispense Mifepristone in their respective states,” company spokesperson Fraser Engerman confirmed last week.

Brandon Richards, a spokesperson for Newsom’s office, told Axios on Monday that “California is reviewing all relationships between Walgreens and the state” — it’s possible that other actions could follow.

Newsom said in an interview with Politico that this is the first step in an “exhaustive review” of all state ties with the pharmacy giant.

“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” Newsom said in a statement. “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 governor’s office said the state won’t renew a contract between Walgreens and the California Department of General Services that provides “specialty pharmacy prescription drugs” mostly used by the state’s correctional health care system.

The state has paid Walgreens $54 million under the contract that was set for renewal on May 1 but will be canceled as part of an ongoing “review of all contracts between the state and Walgreens,” Newsom’s office said. Newsom said the state will “will explore other options for furnishing the same services.”

“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 said in a statement in response to Newsom’s decision.