Defending champions Wasps crashed out of the Heineken Cup after losing their final Pool One game against Biarritz.
Biarritz 18 (8)
Tries: Harinordoquy, Marlu
Wasps 15 (8)
Try: Erinle, Payne
Con: Van Gisbergen
Pen: Van Gisbergen
The Londoners had needed to win and score at least four tries for a bonus point to reach the knockout stages.
But a first-half try from Imanol Harinordoquy and a charging second-half score by Jimmy Marlu proved too much.
Wasps scored early through Ayoola Erinle and set up an exciting finish with Tim Payne's late try, but it was not enough.
Afterwards captain Lawrence Dallaglio said: "Last year we were very accurate. This season we haven't had that accuracy or consistency.
"And that is the reason why we are no longer in this competition."
There was very little between the two sides during the first half, but Biarritz's forwards dominated play as the game dragged on, while their playmakers were tactically excellent with the boot throughout.
Damien Traille got the scoring under way with an early drop goal but it was quickly wiped out as Stuart Abbott's intelligent line of running sent Erinle over the line after just eight minutes.
Moments after Wasps' backs had given a masterclass in running rugby, Biarritz produced exactly the same through their forwards.
Harinordoquy was the lucky recipient as he peeled off the back of his side's rolling scrum.
Mark van Gisbergen levelled the scores before half-time, but Matt Dawson could have put the Londoners in the lead by then only to be held up over the line by Traille.
Wasps needed to make an immediate impact after the interval but their cause took a hefty dent when Marlu barged over the line.
But the visitors were given the perfect chance to turn things round when Harinordoquy was given a yellow card 10 minutes into the half.
For all their efforts, they failed to produce enough fluid attacks and were continually pegged back by the combined kicking of Traille and Dmitri Yachvili.
After a first half of running rugby, it was a much more attritional second 40 minutes.
Yachvili looked to have put the game out of Wasps' reach with a 69th-minute penalty, but Payne had other ideas.
He bulldozed through for a late try, which van Gisbergen converted, but it was too little, too late.
Biarritz: Brusque; Bidabe, Lacroix, Arramburu, Marlu; Traille, Yachvili; Balan, August, Avril; Thion, Olibeau; Betsen, Harinordoquy, Lievremont
Replacements: Lealamanua, Gonzalez, Lecouls, Couzinet, Milheres, Dupuy, Dambielle
Wasps: van Gisbergen; Lewsey, Erinle, Abbott, Voyce; King, Dawson; Dowd, Leota, Green; Shaw, Birkett; Worsley, O'Connor, Dallaglio
Replacements: Gotting, Payne, Rees, Hart, Biljon, Brooks, Hoadley