Valneva SE (VALN) shares surged 7.81% in pre-market trading on Monday following the company's announcement of a significant vaccine supply agreement to combat the chikungunya outbreak in France's Island of La Réunion. The specialty vaccine company will provide 40,000 doses of its IXCHIQ® vaccine starting early April, with an option to supply more, in response to the French government's urgent call for assistance.

The outbreak in La Réunion has intensified rapidly since early 2025, with 8,600 cases recorded and nearly 3,000 new cases reported in the first week of March alone. This surge has prompted local authorities to implement a Level 4 emergency crisis management plan. Valneva's swift response aligns with the recommendation from France's national public health agency to prioritize vaccination for adults aged 65 and over, especially those with comorbidities.

Investors are responding positively to this development, as it not only demonstrates immediate demand for Valneva's IXCHIQ® vaccine but also highlights its potential for use in other chikungunya-affected regions. The company's focus on expanding the vaccine's label and access, including recent partnerships with CEPI and agreements with the Serum Institute of India, further underscores its growth potential in the global vaccine market. However, it's worth noting that Guggenheim has recently lowered its target price for Valneva from $17 to $15, which may impact future stock performance.