By 2050, the number of people with diabetes could top 1.3 billion, according to a recent estimate. Obesity and diabetes are huge health concerns for global economies. Novo Nordisk's (NVO 1.69%) Ozempic has been a popular drug that's helped people shed significant body weight, even though the diabetes drug isn't approved to treat obesity.

But what's exciting is that the drug's potential could go far beyond just that. Here's what investors should know.

Could it be a useful treatment for addictions?

What makes Ozempic and Wegovy, which is approved for chronic weight management, effective in helping people lose weight is that they curb cravings. These drugs target the glucagon-like peptide-1 (GLP-1) receptor, which responds to food intake. By doing so, GLP-1 drugs can help reduce cravings. And according to a report from the Wall Street Journal, the benefits could go much further than weight loss.

In animal studies, scientists observed that GLP-1 drugs could also affect the brain, and thus a person's overall behavior. Neuroscientist Heath Schmidt at the University of Pennsylvania says the potential could be significant: "We're talking about a class of medications that could have efficacy in treating a variety of addictions: cocaine, opioids, nicotine, alcohol, all different addictive drugs with very different pharmacology."

It could be years away from being a reality, and there would still need to be trials, but these types of drugs could have the potential to help people with more than just weight loss. If they get approved for more indications, the sky could be the limit for these drugs, and Novo Nordisk's business.

The results have already been impressive

For the first three months of 2023, Novo Nordisk reported 68% revenue growth (at constant exchange rates) for Ozempic, with sales topping 19.6 billion Danish krone. The drug was the company's top-selling product, accounting for 37% of total revenue.

Overall obesity care revenue rose by 131%, with Wegovy's sales beginning to take off in the U.S. And the company secured an additional contract manufacturer for Wegovy, which should help drive even more revenue growth in future quarters. The demand is so strong for Wegovy in the U.S. that it is hindering Novo's launch of the product in the U.K.

Has Novo Nordisk become too expensive?

Since the start of last year, shares of Novo Nordisk have risen 41%. Today the stock is trading at nearly 40 times its trailing earnings. Investors are paying a huge premium when you consider the average healthcare stock trades at an earnings multiple of just 24.

Analysts at Cowen set a price target of $145 for the stock, suggesting that at its current price of around $160, Novo Nordisk could be due for a drop in value. However, if the company continues delivering strong numbers and demand is as strong as it appears to be, it wouldn't be surprising to see more upgrades for the stock in the future. 

Why the stock could be a no-brainer buy

All it takes sometimes is just one or two drugs for a healthcare business to become dominant. Between Wegovy and Ozempic, Novo Nordisk may already have those types of high-prized assets in its portfolio. If one or both of those drugs could also help treat addictions, the stock would easily surge to even greater heights.

But even just the need to treat obesity and diabetes creates a significant market for these drugs for the foreseeable future. And since they require ongoing treatment, both Ozempic and Wegovy may be cash cows for Novo Nordisk for many years to come. Although the stock may look expensive right now, with more growth and greater earnings potential down the road, it could still prove to be a cheap buy at today's price.