It never fails. The guilt by association when something goes awry in a high-profile stock almost always bleeds to others, even if they have not a thing in common with the offender. The specialty pharmaceutical sector is down a stunning 30% since the end of July. With drug pricing, and sales channels an issue, and politicians howling for action, the perfect negative storm has hit.

In a new research report, RBC sees the third-quarter earnings reports for the top companies on the sector as the first real chance for executives to directly address the big concerns on pricing, other specialty pharma issues and of course the big share price pullback since the summer. RBC thinks that none of the above should have an impact on outlooks, and fundamentals remain very positive. The firm also thinks that companies have the chance to initiate new and larger stock buyback programs, especially at such low price levels.

With the sector having the chance to move dramatically higher, three large cap leaders are the favorites. All are rated Outperform at RBC.

Allergan

This company has many of the top-selling drugs, but it has kept price increases reasonable compared to some of the egregious ones. Allergan Inc. (NYSE: AGN) is focused on developing, manufacturing and commercializing innovative branded pharmaceuticals, high-quality over-the-counter medicines and biologic products for patients around the world.

Allergan markets a portfolio of best-in-class products that provide valuable treatments for the central nervous system, eye care, medical aesthetics, gastroenterology, women’s health, urology, cardiovascular and anti-infective therapeutic categories. Allergan is an industry leader in research and development, with one of the broadest development pipelines in the pharmaceutical industry and a leading position in the submission of generic product applications globally.

ALSO READ: 4 Merrill Lynch Stock Picks Yielding 7% or More

The company recently updated and upgraded earnings estimates for the balance of the year, and the response was very solid. This comes on the heels of Allergan’s gigantic $40.5 billion sale this summer of the firm’s generics business to Teva Pharmaceutical.

RBC’s price target for the stock is a gigantic $354, while the Thomson/First Call consensus price objective is higher at $357.17. Shares closed Tuesday at $285.77.