Precigen (PGEN) shares tumbled 5.10% in pre-market trading on Monday, following the company's announcement of the wholesale acquisition cost for its drug Papzimeos. The biotechnology firm revealed that a single vial of Papzimeos would be priced at $115,000, a figure that appears to have spooked investors.

The steep price point of $115,000 per vial has raised concerns among market watchers about the drug's accessibility and potential market penetration. This pricing strategy could face resistance from insurance companies and patients, potentially limiting the drug's commercial success. Additionally, investors may be worried about how this high cost could impact Papzimeos' competitiveness in the market, especially if alternative treatments are available at lower prices.

While Precigen likely set this price based on factors such as development costs, expected demand, and the drug's perceived value, the immediate market reaction suggests that investors are skeptical about the strategy. As the trading day progresses, all eyes will be on Precigen to see if the company provides any additional context or justification for Papzimeos' pricing, which could potentially influence the stock's performance throughout the day.