This episode of The Motley Fool's Market Checkup is dedicated to the massive increase in biotech IPOs, what's driving the recent spate of major mergers and acquisitions, whether the outperformance of the biotech sector is sustainable, and why potential biotech investors need to think big.

The amount of biotech stocks going public has increased from 11 in 2012 to already 29 this year -- and it's only August! Given the tremendous amount of enthusiasm for these offerings, a virtuous cycle has started to develop.

In this video, health-care analyst David Williamson discusses the winners of the biotech IPO boom, the potential downside to hopping on the bandwagon now, and a better way to invest in early stage drug makers.