The biotechnology industry is one of the most popular targets for investors seeking untapped growth opportunities. There has been a lot of research in recent years on alternative treatments for various diseases and conditions. Every startup biotech company out there is seeking a breakout product that will repay years of research and development in their clinical pipelines.

And while most of the research is focused on biotechnology growth markets such as cancer, cell regeneration, immunotherapy, medical marijuana and nanotechnology, the smart drug market has now emerged as an interesting area for drug makers as demand continues to soar. Man wants to become smarter to explore breakthroughs in other technologies. Competition at technology hubs such as the Silicon Valley is also a major factor that has been driving company executives towards the use of smart drugs.

Over the last decade, several drug manufacturers have come up with their own products targeting this unique class of consumers. While most are developed for the purposes of treating various neurological related diseases, some companies have opted to go all out on manufacturing nootropics for smart-thirsty executives. There are already several types of smart drugs on sale in various markets and this has sparked the rise of online nootropics platforms that seek to capitalize on this compelling opportunity in the pharmaceuticals industry.

One of the most popular drugs in the market is Modafinil, marketed as Provigil. Its early success in the late 2000s and early 2010s triggered the appetite for the manufacture of its generic variations with companies like Teva (Nasdaq: TEVA) U.K. among those involved. And based on reports over the last few years, it appears as though demand for these smart drugs might be outpacing production after Teva was forced to pay $512 million to settle claims of delayed generic Provigil, Reuters reported.

As such, it would appear that there are a lot of people out there seeking to become some sort of “Limitless-like Einsteins.” How they achieve that feat is subject to question but at the moment, smart drugs seem to be the go-to solution. Or are they? Perhaps from the point of view of already widely accepted methods—but on the broader perspective, some companies are exploring alternative ways of making humans smarter.

Some of these companies actually have nothing to do with pharmaceuticals. Take, for instance, Elon Musk one of the most popular business magnates in the technology industry. Due to his ties to technology, Musk’s desire to make humans smarter is driven by the sentiment that AI (Artificial Intelligence) is a genuine threat to the existence of mankind in the far future. Musk believes that rather than worrying about what AI may or may not do to humans in the future, we can instead use AI to make humans smarter.

Reports emerged in March this year that the Tesla (Nasdaq: TSLA) and SpaceX Founder had launched a new startup dubbed Neuralink that seeks to merge human brains with computers. According to the Wall Street Journal, Neuralink is exploring the possibility of “implanting tiny brain electrodes that may one day upload and download thoughts” from human brains by using what he referred to as the “Neural Lace” technology.

That sounds pretty much like a theory taken directly out of a sci-fi movie but then, the smart drug ideology isn’t that different either. Bradley Cooper’s Limitless Movie was just about as popular, thereby leading to the production of a TV series by the same name.

It is that kind of world that we live in—where science fiction continues to inspire the founding of several innovative products and technologies. But now it appears, in order to keep up with the targets set up by those involved in filmmaking, then nootropics could be key.

At least, that is what some of those working in Silicon Valley believe. According to reports, the smart drug market is projected to grow at a CAGR of about 20% through 2021. This would value the market at approximately $580 million in annual sales. Reports indicate that the Silicon Valley is one of the main markets for smart drugs.

Conclusion

There are few industries that can claim double-digit CAGRs for the next 4-5 years, which makes the smart drug market an interesting opportunity to explore further.

Currently, most of the players are privately held but some listed companies such as Teva are getting interested while other players in the technology sector like Tesla’s Musk are looking at the whole situation from a completely distinct perspective. This sets up the nootropics industry for some interesting times ahead.