UPDATE 6-Roche bullish on markets, ups flu drug capacity

* Ups outlook, sees double-digit EPS growth 2009 and 2010

* Profit hit by exceptional expenses from Genentech buy

* To expand Tamiflu flu drug capacity

* Stock rises 2.6 percent

* U.S. drugmakers BMY, Wyeth also post strong results

(Adds BMY, Wyeth results; updates shares)

By Sam Cage

BASEL, Switzerland, July 23 (Reuters) - Swiss drugmaker Roche(ROG.VX) gave a bullish forecast for the next two years on the back of its $47 billion acquisition of Genentech and said it would expand capacity for H1N1 flu drug Tamiflu.

U.S. drugmakers Bristol-Myers Squibb (BMY.N) and Wyeth WYE.N also posted strong results on Thursday, continuing an impressive earnings season for the healthcare sector, which is less vulnerable to recession than other industries. [ID:nN23371374]

Roche missed forecasts with a 29 percent drop in first-half net profit on Thursday, hit by costs related to the Genentech purchase earlier this year, but its stock rose thanks to the strength of its underlying business.

The world's largest maker of cancer drugs upped its earnings guidance due to the Genentech deal and now expects double-digit core earnings per share growth in 2009 and 2010, compared to a previous target to stay at the 2008 level.

"Roche was expected to raise its 2009 guidance but the extent is a positive surprise," said DZ Bank analyst Thomas Maul.

Total production capacity for antiviral Tamiflu, which has been boosted by sales linked to the H1N1 swine flu pandemic, will be expanded to 400 million packs annually by the start of 2010, Roche said.

Signs of H1N1 resistance to the drug are no surprise, given this happens also in seasonal flu, and are nothing to worry about yet, the firm's pharmaceutical head William Burns said.

Tamiflu sales rose more than 200 percent to just over 1 billion francs and Chief Executive Severin Schwan said Roche was able to meet all orders. The group expects similar sales of the drug in the second half.

Roche's stock was up 2.6 percent to 158.50 francs by 1225 GMT, versus a DJ Stoxx European health care sector .SXDP up 0.2 percent.