Valneva SE (VALN) shares surged 7.25% in pre-market trading on Monday following the company's announcement of its response to the chikungunya outbreak in France's Island of La Réunion. The specialty vaccine company will supply 40,000 doses of its IXCHIQ® vaccine starting early April, with an option to provide more, in agreement with local health authorities.

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.

IXCHIQ® is the world's first licensed chikungunya vaccine, approved in several major markets including the United States, Europe, Canada, and the United Kingdom. The European Medicines Agency recently recommended a label extension for use in individuals 12 years of age and older, potentially broadening the vaccine's reach. This development, coupled with Valneva's partnerships to expand access in Low- and Middle-Income Countries, underscores the company's strategic position in addressing this global health threat. However, investors should note that Guggenheim has lowered its target price for Valneva from $17 to $15, which may impact future stock performance.