It's a simple matter of liability. Suppose after they put the medication in their refrigeration your parents claimed some was missing? Or the refrigeration was too cold and damaged the medication? Or there was a claim of tampering with the medication? As you can see, accepting anything on-board, especially medication, opens the airline up to litigation should something go wrong.
Would it have been the right thing to do? Of course, but I don't blame them for acting as they did.
The medication should have been packed in dry ice in their checked luggage. There are allowable limits on items packed in dry ice. Otherwise if the medication was so perishable it should have been shipped by a professional shipper who is used to handling such sensitive items.
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