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Shares of WuXi PharmaTech Cayman Inc. rose Thursday after a Goldman Sachs analyst started coverage of the stock with a "Buy" rating,Flash development outsourcing, and placed WuXi on a list of recommended stocks.

Profits should keep growing over the next two years for the Shanghai-based research and development outsourcing company, said analyst Wei Du. Du said WuXi is in a better competitive position than its rivals,PHP development outsourcing, and China may become a top research outsourcing market for drugmakers in developing countries.

He put the stock on the "Conviction Buy List," and WuXi shares gained $1.25, or 10.3 percent, to $13.40 in afternoon trading.

Du said laboratory service revenue should keep growing,Data processing companies, while the toxicology service and manufacturing service businesses have good potential over the coming years.

"We see strong potential for growth in WuXi‘s manufacturing business in the long term,Outsourcing companies, given its reputation and service quality,Quality Assurance Outsourcing," he wrote.