Novo Nordisk  (NVO)  became Europe’s most valuable company after it made its star-studded diabetes drug Ozempic into a weight loss hit called Wegovy. Now, weaker growth from both are threatening to derail the rally.

The pharmaceutical company is down 3% this morning after reporting weaker-than-expected growth in its second quarter results. While company-wide revenues rose 13%, sales from its obesity care and diabetes GLP-1 divisions slowed, rising 56% and 8% respectively in the quarter. 

The company blamed compounded drugs and new competition for the showing. Both have been thorns in the company’s side. Investors have taken note, too. Year-to-date, the company’s stock has declined over 47%, making it among the worst performers in both U.S. and European markets.

Struggling Sales

The Wegovy and Ozempic producer already signaled that trouble was on the horizon. Just days ago, it reduced its annual outlook and made a surprise leadership shakeup amid weaker sales. It now expects full-year growth of 8% to 14%, down from 13% to 21%. 

Novo’s management makeover came after a botched “collaboration” with telehealth firm Hims & Hers  (HIMS) , which saw the company attempt to sell its branded medication through the platform. It failed to drive desired growth. 

Instead, Novo accuses Hims & Hers of “deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk.” On Tuesday, the firm filed 14 lawsuits against compounders and associated businesses, saying that their sales are illegal copies of its drug.

We-Go Where?

Novo isn’t letting the opportunity in direct-to-consumer run away, though. It says that it plans to expand its D2C platform and cut prices to remain competitive with compounders and new branded competition, namely Eli Lilly  (LLY) . 

CFO Karsten Munk Knudsen said that the prices of Wegovy and Ozempic will keep falling for the next couple of years, with the company hoping lower prices will increase access, particularly in the U.S. market. 

There, coverage for weight loss drugs is still relatively limited, as the drugs retail for more than $1,000. Although, those willing to pay out of pocket in cash can get a deal: $499 per month.

The company also plans to drive growth in other ways. Namely, with the addition of a new weight loss injectable, which has helped overweight and obese patients “lose up to 24% of their weight” in early-stage trials. A pill option for the next-gen GLP-1 drug also demonstrated success.

Late stage trials are ongoing and the company hopes that the U.S. Food & Drug Administration (FDA) could approve the drug, data contingent, by 2026.