On a down day for U.S. stocks, even the latest rumor of a mega pharmaceuticals deal is proving ineffective in propping up exchange traded funds tracking the industry.

Multiple media outlets are reporting that Israeli generic drug giant Teva Pharmaceuticals (NasdaqGS: TEVA) is mulling a bid for Mylan (NYSE: MYL).

“Teva hasn’t made a formal approach yet, the people said, though Mylan is aware of the Israeli company’s interest. Teva is evaluating the purchase internally and has also approached advisers about the potential bid and financing, the people said, asking not to be identified discussing private information,” according to Bloomberg.

Last week, Mylan offered to acquire errigo (NYSE: PRGO) for $205 per share, or $28.86 billion in an effort to form a global powerhouse in generic and specialty drugs as well as over-the-counter treatments. [Pharma ETFs Like Mylan-for-Perrigo News]

News of a potential Teva bid for Mylan has not been enough to lift the PowerShares Dynamic Pharmaceuticals Portfolio (NYSEArca: PJP), which is off 1.6% today. That $2 billion ETF allocates a combined 7.6% of its weight to Perrigo and Mylan.

One ETF with heavy Teva exposure that is trading modestly higher is the iShares MSCI Israel Capped ETF (NYSEArca: EIS). EIS had an almost 26% weight to Teva at the start of trading today.

Showing Page 1 of 2