In the opening Superbike race at the international road racing event in Northern Ireland, Hickman set a stunning new outright lap record of 124.799mph around the 8.9-mile circuit as he charged through the field from 18th to sixth.
"However, a tyre issue forced him to retire on the fifth of six laps and the team has subsequently made the decision to withdraw from the remainder of the event on safety grounds," a team statement read.
"It’s a huge disappointment to all concerned and the team would like to apologise to the event organisers and thousands of race fans but rider safety comes first at all times and we look forward to returning to the North West 200 in 2023."
Hickman – riding for Louth’s FHO racing BMW – will now turn his attention to this weekend's British Superbike championship round at Donington Park.
Lincolnshire's Tom Neave is riding in the British Superbikes for Louth-based Honda Racing, but was taken to hospital and treated for concussion after a crash in the previous round at Oulton Park.
"Massive thanks to everyone who’s taken the time to message me on my socials, overwhelmed with all the well wishes," Tom said after being discharged from hospital.
"I think when you have a small brain it must shake around more."
Also competing in the Superbikes is Lincoln's Lee Jackson, the FS-3 Racing Kawasaki rider winning race three last time out at Oulton Park.
Tom's twin Tim Neave heads to Donington Park this weekend looking to extend his lead at the top of the Pirelli National Superstock.
The Edwards Yamaha rider currently holds a 12-point lead over closest rival Brayden Elliott.
"We're still leading the championship and head to Donington, a circuit I really enjoy and where the bike works very well," Neave said, looking forward to this weekend's action.
Also in the National Superstock, Jorel Boerboom will ride for Wyberton's G&S racing, with pace setter Kevin Keyes and Zak Fuller representing the team in the Pirelli Junior Superstock.
Lining up against them with be Aaron Silvester (A&J Racing Yamaha), currently fourth in the standings.
His brother Max (TeamVal-Tech Yamaha) will also be on the grid as will Boston's Kier Armstrong (Lincolnshire Racing Mulisha Kawasaki).
Armstrong is looking to pick up points in his second year in the series.
"I believe if we have the budget to have a competitive package, I will be running within the top 10,” he said.
In the Honda British talent Cup, Skegness' Rhys Stephenson will be looking to build on his second-place finish last time out.Practice, qualifying and racing at Donington Park will be held from Friday to Sunday this weekend.