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UPDATE 1-Drugmaker Teva lowers 2017 outlook again after Q3 earnings fall

* EPS $1.00 down from $1.31

* Generics margins under pressure

* Lowers year EPS, revenue forecasts

* Shares down 11 pct (Adds details, background)

JERUSALEM, Nov 2 (Reuters) - Teva Pharmaceutical Industries , the world's biggest generic medicine maker, warned on 2017 earnings on Thursday after reporting a fall in third-quarter profit hurt by competition in the U.S. market.

A day earlier U.S. shareholder Allergan announced it would begin selling down its 10 percent stake in the Israeli company, whose new chief executive, Kare Schultz, took the reins this week.

His predecessor stepped down in February after sharp criticism for a string of expensive acquisitions and delayed drug launches.

Schultz needs to convince investors that Teva can boost growth and reduce a debt load acquired mostly from financing its $40.5 billion purchase of generics business Actavis, part of Allergan, last year.

In September, it announced it would sell the remaining businesses in its specialty womens health business for $1.38 billion.

EPS TUMBLES

Teva reported third-quarter earnings per share (EPS) excluding one-time items of $1.00, down from $1.31 a year earlier, on revenue up 1 percent at $5.6 billion.

Generic drug profits fell to $619 million from $982 million a year earlier on sales of $3.01 billion, down from $3.26 billion.

It said it was being hurt by a lower-than-expected contribution from new generic launches in the United States as well as by increased price erosion.

Sales of its branded multiple sclerosis drug Copaxone fell 7 percent to $987 million.

The earlier-than-expected launch of a generic competitor to Copaxone in October will have an expected impact on EPS of 30 cents this year, Teva said.

The quarterly results were broadly in line with analyst forecasts of $1.02 EPS ex-items on revenue of $5.6 billion, Thomson Reuters I/B/E/S data showed.

However, Teva lowered its full-year forecasts.

It cut its EPS ex-items forecast to $3.77-$3.87 from $4.30-$4.50. It cut its revenue forecast to $22.2-$22.3 billion from $22.8-$23.2 billion.

Analysts had been expecting a full-year EPS of $4.19 on revenue of $22.6 billion, Thomson Reuters I/B/E/S data showed.

"We now project approximately $400 million of revenues from new product launches in the year, compared to the previous projection of $500 million," it said.

Teva shares were down 11 percent at 44 shekels as of 1235 GMT.

Teva will pay a quarterly dividend of 8.5 cents a share, unchanged from the second quarter when it cut its payout by 75 percent. (Reporting by Steven Scheer and Tova Cohen; editing by Jason Neely)