Chances are, she's too emotionally close to this to see it clearly. Telling her this is a bad idea or to get an abortion won't do anything except upset her and make her angry with you. You may think you're right and she's not (and that might be true, I don't know) but you need to understand that this is her life as she knows it. She loves this man and is excited about her pregnancy.
Instead of trying to hammer it into her head that she's making a mistake, be there for her. Things will probably get worse for her, and instead of saying "I tried to tell you", just be there to catch her when she falls. Even if you can't bring yourself to support her, just let her know that you'll always be there if she needs a friend.
If you're worried for this baby, however, it's probably in your friend's best interest for you to ask her to stop using drugs. Print out some information online about drug use and pregnancy, newborns born with addiction problems, birth defects, and behavioral problems. Present this information to her with an "I'm just trying to help you make some good choices for your baby" attitude, not a "you're doing wrong and you're being a bad mother" attitude. She'll be more likely to listen if she feels you're her friend and not judging her. Also, you might want to keep in close contact with her after the baby's born. If you think her and the father are using drugs around the baby or that they're in the house, an anonymous call to CPS might be in order.
These are ways that you can help your friend without pushing her away. You can't fix this for her, mainly because she doesn't want this to be fixed. If you're looking for advice on how to get some sense into her head, I'm afraid that's going to be hard. She's going to need to learn this lesson on her own, and it's not going to be an easy ride. She needs strong, reliable friends around her right now.