Eli Lilly (LLY 2.03%) is a top healthcare company that continually finds new ways to grow and create value for its investors. Revenue of $28.3 billion last year has steadily grown by 24% from the $22.9 billion the healthcare business reported in 2017. And there's potential for the company to continue to get even bigger.

One of the company's recent diabetes treatments has obtained approval from the U.S. Food and Drug Administration (FDA). But it's what the treatment isn't approved for yet that has analysts and investors excited.

Businessperson with a stock chart in the background.

Image source: Getty Images.

The new diabetes treatment may have wider use

On May 13, Eli Lilly announced that the FDA had approved Mounjaro (tirzepatide) to treat people with type 2 diabetes. However, during studies, Mounjaro also demonstrated effectiveness in helping people lose weight -- participants lost up to 52 pounds (22.5% of their body weight) over the course of 72 weeks of treatment.

The potential in the weight-loss market is significant since there are some incredible growth opportunities available there -- as seen in the chart.

Weight Loss Supplements Market.

Source: Grand View Research. Chart by author.

The opportunity could be in the billions

A year ago, the FDA approved Wegovy (semaglutide) for chronic weight management. Novo Nordisk (NVO -0.21%) makes the injectable that in studies saw some participants lose more than 17% of their body weight. And the treatment has already become a significant moneymaker for the company. As of the Novo Nordisk's most recent quarter (ended March 31), Wegovy was already among its top-five drugs in the U.S. market for diabetes and obesity care.

Novo Nordisk Q1 revenue in the U.S. by product.

Source: Company filings. Chart by author.

In U.S. dollars, that's about $200 million for the quarter. Over the course of the year, that's close to $800 million for a relatively new treatment that's still scratching the surface and has only been generating sales in the U.S. market.

And with Mounjaro helping people lose more than 20% of the weight, it's possible that Eli Lilly has an even more promising weight loss treatment on its hands. It still requires FDA approval for the indication -- and, of course, there's no guarantee that will happen -- but the early data is encouraging.

While the shares trade at a premium, it could be worth it

Today, Eli Lilly shares trade at more than 44 times the company's trailing profits. Although that's steep compared to the average healthcare stock in the Healthcare Select Sector SPDR Fund, which trades at a multiple of less than 22, the company's continued growth opportunities could help justify the premium.

If Mounjaro gets the green light from the FDA as a weight loss treatment, that could unlock significant potential for Eli Lilly and be a game changer for the business in the long term.