Shlomo and Eyal will begin by providing an overview of our results. Please note that Shlomo will be referring in his prepared comments to non-GAAP gross margins, operating profit, net income and EPS. Eyal will provide additional detail on the items excluded from our non-GAAP results. We will then open the call for question-and-answer period.Before we proceed to the call, I would like to remind everyone that the Safe Harbor language contained in today's press release also pertains to this conference call and web cast. Shlomo? Shlomo Yanai Thank you, Elana. Welcome everyone, and thank you for joining us today as we review Teva's results for the second quarter of 2010. This was an outstanding quarter for Teva. Indeed, it was our strongest quarter ever in (inaudible) of any growth. Net sales reached $3.8 billion breaking all previous records in local currency clearance with record gross margins of 59%. Quarterly operating profit reached a record $1.2 billion, a 22% increase over the second quarter of 2009. Net income in the quarter reached $981 million, 32% increase of the Q2 '09 and for the first time EPS cross the $1 mark to reach $1.08. Our free cash flow reached $700 million, an increase of 86% of the Q2 '09. Teva's better than anticipated results in the second quarter were driven by superb performances across our many geographies and lines of business including especially strong sales in North America. We got a great quarter for Teva in North America with record breaking results. Record sales of generics and record number of new product launches. Total sales in North America reached $2.5 billion in Q2, up 17% over the second quarter of 2009. We have sales of $1.5 million in US generics, up 14% over the second quarter of 2009, and strong sales of our branded products.
It was also an exceptionally busy quarter with nine new launches representing a brand value of over $7.5 billion. This intensive pace has continued into the beginning of Q3 with our launch of (inaudible) ER, generic version of Fexo XO (ph). Thanks to the efforts of our outstanding global team, within 24 hours of launching over 25,000 pharmacies in the U.S. were supplied with the products, ready to dispense to the patients.This was also an excellent quarter for our European business, which despite the challenging market conditions in this region, reached sales of $811 million at 10% of the Q2 '09 in local currency terms. Sales were up in all our major European markets and nearly all our other European market as well. Gross was especially impressive in France, Italy and in the new World Cup winner, Spain, where sales grown by well over 20%. I believe that our performance in Europe this quarter demonstrates Teva's strong capabilities in managing a complex business environment. The recent healthcare reforms in Europe, doing involve some pricing pressure in the short term, but there is an outstanding opportunity, although the longer term to increase generics penetration in these markets. Pricing pressure is something we are accustomed to. In the intensely competitive U.S. market for a long time and it is a phenomenon that Teva is adept at managing. For all these reasons, we remain very optimistic about the future of our European business. Let's turn now to our international business, where sales reached $522 million, up 6% in local currency over Q2 '09. Our strong performance in markets including Latin America and Israel were offset by weaker results in Russia during this quarter. Our results in Russia, one of the fastest growing markets, where we continue to strengthen our market position, are simply a matter of the timing of tenders (ph) and the very large sales to governments, which were especially strong in the first quarter of this year as well as in the comparable second quarter of 2009.
Q2 was another outstanding quarter for our innovative business. Global in market sales of Copaxone, the world's leading therapy for the treatment of multiple sclerosis grew by 13% over the second quarter of 2009 to reach $770 million. Copaxone sales in the U.S. grew by 21% and according to IMS data; Copaxone maintained its leading market position in the U.S. with TRX (ph) of 40%.We are continuously working to develop new ways of improving the experience of patients taking Copaxone. In April, the FDA indicated that the supplemental new drug application, SMDA (ph) for our lower injection volume of Copaxone had been accepted and the action date is January 1st, 2011. In our (inaudible), which will examine a 40 milligram glatiramer acetate injection dosed three times weekly, initiated patient recruitment during the second quarter of 2010. We are confident that Copaxone sales leadership, although the last 10 years will continue and that is unsurpassed long-term efficacy, safety and tolerability established over 1 million years of patient experience will enable Copaxone to remain well-positioned even as new all (ph) therapies come to market. Read the rest of this transcript for free on seekingalpha.com