JERUSALEM, Aug 4 (Reuters) - Teva Pharmaceutical Industries will focus on the integration of Allergan's generics business into its operations, it said on Thursday, after completing the $40.5 billion deal this week.

The deal, which was announced in July last year, solidifies Israel-based Teva's position as the world's No. 1 maker of generics.

Besides integrating Actavis, Teva Chief Executive Erez Vigodman also said the company would focus on delivering on its operational and financial targets and on development and commercialization of more than 35 products in its pipeline.

Teva posted earnings per share excluding one-time items of $1.25 per share, down from $1.43 a year earlier. Revenue grew 1 percent to $5.0 billion.

Vigodman said Teva plans to use its strong cash flow to pay down debt and continue to invest in specialty products.

Teva's generics drug revenue fell 7 percent to $2.3 billion, led by a 33 percent drop in the United States. But its branded multiple sclerosis treatment Copaxone recorded an 8 percent rise in sales to $1.1 billion.

The drug, which Teva said accounts for about 20 percent of revenue and 44 percent of its profit, is facing competition. Sandoz, part of Swiss drugmaker Novartis AG, and Momenta Pharmaceuticals last year launched a once-daily 20 mg version called Glatopa.

Overall, specialty drug revenue rose 9 percent to $2.3 billion.

The company reaffirmed it expects 2016 revenue of $22-$22.5 billion and adjusted EPS of $5.20-$5.40.

Teva declared a cash dividend of 34 cents a share for the second quarter, the same as the previous three months.

(Reporting by Steven Scheer; editing by Susan Thomas)