According to spokesman Eric Miller, Bristol-Myers Squibb will return rights to the drug to Kyorin Pharmaceutical Company in Japan.
The drug came under fire in February, when the U.S. Food and Drug Administration (FDA) called for increased warnings on the drug's label.
Bristol-Myers Squibb was required to warn user that it should not be used by diabetics and said the elderly and those with kidney disease are more likely to have problems.
According to the FDA, Tequin has been questioned about its effects on blood sugar, being associated with both high- and low-blood sugar in some patients.
A public interest group, Public Citizen, has petitioned the FDA, to ban the antibiotic, and ask for a recall.
Dr. Sidney Wolfe, director of Public Citizen's Health Research Group, says, "This drug carries unique risk but has no unique benefits and therefore should not be on the market."
According to the drug maker, Tequin is prescribed for chronic bronchitis, sinusitis, pneumonia, urinary tract and other infections.
