These massive awards go to researchers who have made truly novel discoveries. They tend to be older researchers past their prime who have already reaped rewards of their research (fame and likely money).
Funding for general research in life sciences has dipped to an all time low, with success rates less than 10% (it was much higher before the economic crisis a few years ago). The top amazing research by big groups still gets funded, but there is still some excellent work that goes unfunded, particularly by young up and coming talented researchers. These young investigators don't yet have a name for themselves, and unfortunately that impedes their ability to get grants and thus do their research.
The Gates foundation is an excellent example of how this can be done -- In today's economy, I would prefer to see something similar than a massive pot going to a few amazing but well established researchers. Of course this wouldn't have made the news if it wasn't over the top...
Source: http://rss.slashdot.org/~r/Slashdot/slashdotScience/~3/TDEC_znhycw/story01.htm
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