With the IPO bonanza of 2013 continuing into 2014 -- although abated a bit by the general sector pullback during the Spring -- investors have the opportunity to buy stock in a variety of new firms with exciting drugs and clinical pipelines.

But it's important to invest carefully. Watch for companies with expansive pipelines and drugs in mid-to-late stage development. Or companies with products already on the market.

In the video below, fromĀ Where The Money Is, health care analysts Michael Douglass and David Williamson lay out more about how people can invest smart in biotech.

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