This is a scalpel taken from a Vahzilok operating table in a tale you like to call:
The Vahzilok Conference
It all started when Dr. Dimitri Krylov found out that Dr. Vahzilok was coming to visit the Rogue Islands. Krylov sent you after a Vahzilok hideout to find the reason for the visit, which you discovered was to meet with Facemaker, the resident animator.
Krylov had an idea to keep the conference between the two from happening. He sent you to Paragon City to capture a number of citizens and bring them to a Vahzilok operating table in the sewers. Dr. Vahzilok was forced to cancel his trip while he dealt with the sudden increase in heroes hunting him down.
The conference was cancelled, but Krylov decided to make the best of the situation. He sent you after Facemaker to take the notes she was going to share with Vahzilok.