Valeant Pharmaceuticals reported better than expect profit for the first quarter, increasing its full-year outlook to between $2.65 and $2.90 a share as a result.

Citing the company’s speciality and generic drug businesses as particularly fruitful, Valeant reported first-quarter earnings of $6.5m in comparison to a $3.2m loss it reported during the corresponding year-ago period.

Revenue stood at $565m compared to year-ago revenue of $219m, including $36m alliance and royalty revenue related to the product rights licensing for the steroid Cloderm.

Last week, Valeant dropped its $5.7bn bid for Cephalon, which was eventually acquired by Teva, but the company is expected to seek fresh acquisitions on the back of these positive financial results.