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

Leaked: This coming blockbuster will make every biotech jealous
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need to Motley Fool’s new free report on the dream-team responsible for this game-changing blockbuster, CLICK HERE NOW.

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