Precigen (PGEN) shares took a sharp dive during Monday's trading session, plummeting 7.17% following the company's announcement of a steep price point for its drug Papzimeos. The biotechnology firm revealed that the wholesale acquisition cost for a single vial of Papzimeos would be set at $115,000, a figure that has sent shockwaves through the investment community.

The dramatic stock movement began in pre-market trading, with Precigen shares already down 5.10% as investors reacted to the pricing news. The downward trend continued into the regular trading session, reflecting growing concerns about the drug's market potential and accessibility at such a high price point. Analysts suggest that the $115,000 per vial cost could face significant resistance from insurance companies and patients, potentially limiting Papzimeos' commercial success and market penetration.

While Precigen likely considered factors such as development costs and the drug's perceived value in setting this price, the immediate market reaction indicates skepticism about the strategy. Investors appear worried about how this high cost could impact Papzimeos' competitiveness, especially if alternative treatments are available at lower prices. As trading continues, market watchers will be closely monitoring any additional statements from Precigen regarding their pricing strategy, which could potentially influence the stock's performance in the coming days.