(Reuters) -Pfizer lifted its annual profit forecast, banking on cost cuts, a smaller-than-feared drop in sales for its COVID antiviral treatment and strong demand for pneumonia vaccine, sending its shares up about 2% before the bell on Wednesday.

Shares of the U.S. drugmaker have lost 11% of their value this year on worries over its growth after the pandemic as billions of dollars in COVID vaccine and treatment sales evaporated.

The drugmaker has responded with a $43 billion purchase of cancer drugmaker Seagen, a $4 billion cost-cut plan and internal restructuring.

Pfizer reiterated its annual revenue forecast of $8 billion from the sale of COVID-19 shot Comirnaty and anti-viral treatment Paxlovid.

Revenue from Comirnaty, for which it partners with Germany’s BioNTech, continues to perform consistently with its expectations, Pfizer said.

However, first-quarter sales from the vaccine came in at $354 million, missing analysts’ average estimate of $496.5 million.

Pfizer expects about 90% of vaccine sales to occur in the second half, mostly in the fourth quarter.

Sales of Paxlovid stood at $2.04 billion for the quarter, beating analysts’ expectations of $762.5 million.

“Paxlovid revenues in the quarter indicate a successful transition into the commercial marketplace,” CEO Albert Bourla said.

Its market-leading pneumonia family of vaccines, sold under the brand name Prevnar, brought in sales of $1.69 billion, beating estimates of $1.66 billion.

Pfizer last year renegotiated a contract, allowing the U.S. government to return unused Paxlovid inventory. It recorded a $771 million favorable adjustment in the quarter related to the U.S. government return of some treatments.

The company expects adjusted earnings per share of $2.15 to $2.35 in 2024 compared with a prior forecast of $2.05 to $2.25.

It posted an adjusted profit of 82 cents per share, while analysts on average were expecting it to earn 52 cents, according to LSEG data.

(Reporting by Bhanvi Satija and Sriparna Roy in Bengaluru; Editing by Arun Koyyur)