In the software world, the case against patents is very strong. In biotech R&D costs can be in the millions or billions of dollars. It's a mistake to reflexively apply the hacker's justified aversion to patents to other fields.
The arguments you provide may justify the existence of some patents, but certainly not this one.
[1] http://www.reuters.com/assets/print?aid=USTRE62F5YR20100316
It may very well be true.
It is common to argue that intellectual property in the form of copyright and patent is necessary for the innovation and creation of ideas and inventions such as machines, drugs, computer software, books, music, literature and movies. In fact intellectual property is a government grant of a costly and dangerous private monopoly over ideas. We show through theory and example that intellectual monopoly is not necessary for innovation and as a practical matter is damaging to growth, prosperity and liberty. -- Michele Boldrin and David K. Levine in Against Intellectual Monopoly.
Against Intellectual Monopoly is a book that made the case against patents and copyrights in all of its form.
You can read the entire book for free at this website:
http://levine.sscnet.ucla.edu/general/intellectual/againstfi...
According to my reading of the case, the company didn't invent a breast cancer procedure. Instead, they found a gene that has some involvement in breast cancer and tried to claim suppressing said gene. They lost because their patent didn't disclose or claim anything relevant to suppressing said gene.
IFRC, the judge said that they didn't invent anything, which they pretty much conceded. Since you can't patent discoveries, only uses of discoveries to do something, they lost.
PDF: http://www.aclu.org/files/assets/2010-3-29-AMPvUSPTO-Opinion...
http://www.econtalk.org/archives/2009/05/boldrin_on_inte.htm...