The NAP originally granted the appeal due to a “breach of natural justice” at the last hearing, but CPS claimed that was a “procedural defect” which should be referred back to the board rather than grounds for an appeal.
Mr Graham agreed and a brand new PPC will now be convened to hear the case.
A spokesman for Community Pharmacy Scotland said: “Community Pharmacy Scotland wrote to the chair of the National Appeal Panel and asked him to consider whether they wished to proceed along the lines they were doing.
“We were looking to ensure the regulations and powers contained within them (NAP) were applied correctly.”
The move was slammed by supporters of the pharmacy as well as the applicants.
Mr Dryden said: “To say we were disappointed that the hearing was cancelled just a few days before it was supposed to take place is an understatement.
“We had put in a massive amount of time and effort and had driven through to Edinburgh just 48 hours before to hand in our evidence. Unfortunately we are still not clear when our application will be determined and we face a period of uncertainty.
“However, the objective remains unchanged and we will continue to work towards bringing a pharmacy to the people of Whitlawburn.”
James Kelly MSP added: “It’s disappointing the appeal will not now go ahead.
“The hearing will now be convened by the health board panel and I, along with the people of Whitlawburn, will be strongly supporting the application being accepted.
“It’s regrettable the NAP has reversed its original decision to look at the application and questions need to be asked as too how it reached that decision.”