A drug that extends the life of patients suffering from an unusual form of cancer was rejected for use by the NHS in Scotland yesterday, because it costs too much.

Patient groups and clinicians expressed anger and disappointment after the treatment for multiple myeloma was blocked.

Research has shown the drug, Revlimid, can prolong the life of sufferers by nearly three years.

However, the Scottish Medicines Consortium, which guides health boards on which new treatments to prescribe, ruled that it did not offer value for money. It costs up to £4367 per month.

The Rarer Cancer Forum described the decision as "death by finance".

Penny Wilson-Webb, chief executive of the charity, said: "Are the people in Scotland to accept third-rate cancer services where patients are left to die when drugs are available to help save their lives? It is time that people in Scotland stand up to this and demand a better and a fairer service."

Multiple myeloma occurs when a type of white blood cell becomes abnormal and multiplies out of control, affecting the bones and leaving patients more vulnerable to infections.

Around 300 new cases a year are diagnosed in Scotland. It is more common in pensioners and sufferers face death in three to five years.

Dr Paul Micallef-Eynaud, haematology consultant at Ayr Hospital, said he had received special permission from his health board to give a number of patients the drug. Two, who had not responded to other therapies, were taking Revlimid and had seen a great improvement in their quality of life.

He said: "Sanction from the SMC would allow me to use this drug on a wider basis."

Dr Colin Wheeler, medical director for Celgene, the company which developed the treatment, said they believed the cost effectiveness of the drug met the standards required by SMC.

He added: "We want to resubmit and make sure this drug is accepted in Scotland."

A spokesman for SMC said: "The manufacturer has informed us they intend to make a new submission and we look forward to receiving it."