* Bexsero is first approved vaccine in Europe for MenB
* UK committee advises against inclusion in vaccineprogramme
* Committee cites cost concerns as main reason
* Novartis to submit pricing information before finaldecision
ZURICH, July 24 (Reuters) - Swiss drugmaker Novartis suffered a fresh blow to the turnaround prospects ofits loss-making vaccines division as a key committee advisedagainst including its meningitis B vaccine on Britain's routinevaccination programme.
The UK Joint Committee on Vaccination and Immunisation(JCVI) said on Wednesday that it had taken the interim decisionnot to recommend Bexsero because the vaccine is unlikely toprove cost-effective.
Bexsero won European approval this year to become the firstvaccine against "MenB", a bacterial infection that can kill in24 hours and poses the greatest risk to infants.
The declining incidence of MenB, however, means thatcash-strapped governments may be reluctant to administer thevaccine broadly as a preventative measure.
Bexsero is seen as crucial to the Novartis vaccine unit,which has struggled to catch up with the market leaders -GlaxoSmithKline, Sanofi and Merck -and was the only one of the Swiss company's five divisions toreport an operating loss in the second quarter.
"Today's decision represents a material setback toNovartis's beleaguered vaccine division. In the absence of asuccessful appeal, Bexsero revenue will likely be restricted toa minimal private-payer market," Citi analyst Andrew Baum said.
"More importantly, it could force Novartis to sell, partneror more likely integrate its vaccine business within itspharmaceutical infrastructure."
Novartis said the committee's decision underestimated the"potentially devastating impact" of the disease.
"It's disappointing to see that the decision was mostlydriven by financial considerations and without any pricingdiscussion with Novartis," said Andrin Oswald, head of theNovartis Vaccines and Diagnostics division.
The drugmaker said it would supply information on pricingbefore the recommendation is finalised.