Eighteen non-leveraged exchange traded funds hit all-time highs Tuesday, but in something of a departure from days with a decent number of all-time ETFs, just two were healthcare funds.

One of those ETFs was the Market Vectors Pharmaceutical ETF (NYSEArca: PPH), a fund that suddenly finds itself with an important, though supporting role in a new pharmaceuticals industry lover’s triangle.

Here is how that triangle was formed. Earlier this month, Mylan (NYSE: MYL) offered to acquire Israeli rival Perrigo (NYSE: PRGO) for $205 per share, or $28.86 billion in a bid to create a global juggernaut in generic and specialty drugs as well as over-the-counter treatments. [Mylan Offer for Perrigo Boosts Pharma ETFs]

With Perrigo management not immediately responding to Mylan’s offer, rumors started circulating that Israeli generic giant Teva Pharmaceuticals (NasdaqGS: TEVA) was interested in Mylan, rumors that were confirmed Tuesday when Teva offered $40.1 billion in cash and stock for Mylan. [Teva Offer for Mylan Doesn’t Stir Pharma ETFs]

The Tuesday drama for PPH did not end there. After the close of U.S. markets yesterday, Perrigo finally got around to responding to Mylan, rejecting the latter’s bid. That could compel Mylan to listen to what Teva has to say. After all, even with Tuesday’s jump of nearly 9%, Mylan’s market value is $28 billion, making a $40 billion quite compelling.

All of this relevant to PPH because Teva, Perrigo and Mylan combine for 8.8% of the ETF’s weight. Said differently, three of the $382 million ETF’s 26 holdings are ensconced in a takeover quarrel of sorts. Even when the Teva/Mylan/Perrigo situation is resolved, that likely will not be the end of PPH’s involvement in healthcare mergers and acquisitions activity.

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