UPDATE 3-Mylan raises forecast on strength of generic Copaxone

* Raises lower end of 2017 revenue, adjusts earnings forecasts

* To benefit from approval of Copaxone generic

* Declining EpiPen sales, falling generic prices dent Q3

* Shares reverse premarket course, up 1.5 pct (Adds analyst quote, details on Copaxone sales; updates stock price)

Nov 6 (Reuters) - Mylan NV on Monday raised its full-year forecast and expects sales from its recently approved version of Teva's blockbuster multiple sclerosis treatment Copaxone to offset declining revenue from its EpiPen emergency allergy injector.

The drugmaker's shares rose 4.3 percent to $37.24 in early afternoon trading.

Mylan raised the lower end of its 2017 forecasts after the surprise approval of Copaxone in October. It is the leading MS therapy worldwide, generating more than $4 billion in revenue for Teva last year.

Mylan said it was pleased with how much market share it has picked up with its version of the 40-milligram dose of the drug - by far the most commonly prescribed dosage. For the week ended Oct 27, Mylan said it took a 16.2 percent share of new prescriptions and around 8 percent of total prescriptions.

Mylan now expects full-year earnings of $4.45 to $4.70 per share, up from its previous range of $4.30 to $4.70 per share. It expects revenue for the year to reach between $11.75 billion and $12.50 billion.

Still, Mylan's third-quarter results were weaker than expected as the company struggled with declining EpiPen sales.

Those sales fell by $245.1 million on increased competition and higher governmental rebates following a settlement with the U.S. Department of Justice, Mylan said.

Additionally, the company said third-party net sales in North America fell 22 percent, or $333.3 million, from a year earlier. The company blamed falling generic prices and loss of market exclusivity for one of its drugs.

"Pressure on Mylan's legacy business appears a little worse than originally expected, though... the company appears positioned to offset that through product introductions," Barclays analyst Douglas Tsao said in a research note.

Mylan's net earnings were $88.3 million, or 16 cents per share, in the third quarter ended Sept. 30, compared with a loss of $119.8 million, or 23 cents per share, a year earlier.

The year-ago quarter included litigation-related expenses of $558 million.

Revenue in the quarter fell 2.3 percent to $2.99 billion.

Excluding items, Mylan earned $1.10 per share. Analysts on average had expected a profit of $1.20 per share and revenue of $3.09 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Michael Erman in New York and Tamara Mathias in Bengaluru; Editing by Sriraj Kalluvila and Dan Grebler)