By Lewis Krauskopf

NEW YORK (Reuters) - Teva Pharmaceutical Industries Ltd (TEVA.O: Quote, Profile, Research)(TEVA.TA: Quote, Profile, Research) said on Thursday it expected to double its revenue to $20 billion by 2012 as it extends its leadership in the booming market for lower-cost generic drugs.

The world's largest generic drug maker said the global generic drug market is expected to grow to $120 billion in 2012 from $75 billion in 2007. Governments and other health-care payers will demand generic versions of brand-name versions to try to control health-care budgets, the company said.

The Israel-based company said its size and economies of scale would give it an advantage.

"When you are a big nationwide retailer ... you are looking for a reliable supplier with the breadth of product, with the quality you can rely on," Teva CEO Shlomo Yanai told analysts during a half-day meeting in New York.

Teva will look for deals that complement its business, but its growth will be largely organic, Yanai said.

The company, which also makes brand medicines for multiple sclerosis and neurological conditions, projected that its net profit margins would exceed 20 percent by 2012.

In the United States, the world's largest pharmaceutical market, Teva projected its generic business would grow 14 percent on average per year through 2012, ahead of a 10 percent average annual increase for the overall industry.

"We will outpace the market," said Bill Marth, president and CEO of Teva North America.