The group analyzed the cost effectiveness of the drug, used to treat the cancer mesothelioma, and concluded that the drug would not be recommended for use except as part of ongoing or new.trial.
Mesothelioma is a kind of cancer that affects the lung lining and nine out of ten cases are due to exposure to asbestos. People who are involved in shipbuilding, railway engineering and asbestos product manufacturing are at an increased risk.
The makers of the drug, Eli Lilly, said it will appeal against the decision.
"This treatment does not save lives, but it can prolong the lives of patients and also improve the quality of the time they have left. Lilly will be formally appealing NICE's decision." She added.