Teva Pharmaceutical Industries Ltd. (TEVA) Tuesday reported second-quarter profit rose 53% on strong sales of flagship multiple sclerosis drug Copaxone and growth of its generic operations, especially in North America.

The Israeli generic-drug manufacturer dominates the generic-drug industry, as the branded pharmaceutical sector is under pressure from looming patent expirations in coming years. The company sees a strong second half of the year, raised the lower-end of its 2010 adjusted earnings guidance and expects its $5 billion acquisition of German generic-drug company Ratiopharm to close earlier than expected.

"2010 is well on track to becoming another year of profitable growth and major achievements for Teva," Chief Executive Shlomo Yanai said Tuesday.

American depositary shares of Teva recently rose 1.6% to $50.92.

Looking forward, Teva now expects earnings of $4.50 to $4.60 a share, excluding items, compared to previous guidance of $4.40 to $4.60 a share.

Analysts expect 2010 adjusted earnings of $4.53 a share, according to Thomson Reuters.

The 2010 guidance doesn't include the Ratiopharm deal, which was agreed to in March. Teva had projected the acquisition to close towards the end of the year, but now expects it to close in the third quarter ending Sept. 31.

On a conference call Tuesday, the company said the deal will add to sales in 2010 and cut earnings by about 3 cents a share, while adding to earnings in 2011.

The company's guidance implies a stronger second half, which the company said is seasonally stronger in the generics business.

Adding to the results will be the July 1 launch of a generic version of Pfizer Inc.'s (PFE) antidepressant Effexor, which had U.S. branded sales of $2.75 billion in 2009, according to Teva. The company has six months of exclusivity in selling the product.

Furthermore, Teva believes that the Food and Drug Administration's decision on its application to sell a generic version of Sanofi-Aventis SA's (SAN.FR, SNY) blood thinner Lovenox could be just a month away.

Last week, the agency approved a version developed by Momenta Pharmaceuticals Inc. (MNTA) and Novartis AG's (NOVN.VX, NVS) generic drug unit Sandoz. Teva filed key documents in the review about a month later than those companies.

Teva is continuing talks with the agency about its application and said it is ready to launch as soon as it gets approval.

For the quarter ended June 30, Teva's earnings were $797 million, or 88 cents a share, compared to $521 million, or 58 cents a share in the year-earlier quarter.

Excluding items, earnings per share were $1.08, beating analyst expectations of $1.04, as measured by Thomson Reuters.

Sales rose 12% to $3.8 billion, from $3.4 billion, despite changes in exchange rates hitting sales by $52 million during the period. The figure was in line with expectations.

Teva's sales in North America rose 17% to $2.47 billion, accounting for 65% of total sales during the quarter, boosted by Copaxone and nine generic drug launches.

Global in-market Copaxone sales rose 13% in the second quarter to $773 million. Global sales of neurological treatment Azilect rose 29% to $70 million.

During the quarter, Teva increased the price of Copaxone by 9.9%, prompted by increases from other multiple sclerosis drugs on the market. Recently, the price of Tysabri, sold by Biogen Idec Inc. (BIIB) and Elan Corp. (ELN), rose 19%.

The company noted that recent healthcare reforms in Europe have put pressure on prices in the region, something that a number of drug makers have highlighted. The moves come as governments attempt to cut spending in response to the sovereign debt crisis.

Teva said that its European sales grew by 10% in the quarter, on a constant currency basis, and that it was comfortable operating in such an environment.

"Pricing pressure is something that we are accustomed to...it is a phenomenon that Teva is adept at managing," Yanai said on the call.

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com

-By Sten Stovall, Dow Jones Newswires; +44 207 842 9292; sten.stovall@dowjones.com