The 20-year-old fell once on Friday and once on Saturday, sustaining injuries to his right hand and wrist, including a fracture to his fifth metacarpal that limits mobility and strength.
"I'm very sorry I was unable to race, but my right wrist was very swollen and hurt a lot, not to mention the fractured fifth metacarpal in my right hand," said Davies. "I want to say thank you to the entire team for all their hard work these last four races, it has been an unforgettable experience."
Davies must now decide between accepting the role of Ducati/Bridgestone test rider or returning to the AMA.
Meanwhile, the satellite Ducati team has confirmed that its new 2008 rider line-up of Toni Elias and Sylvain Guintoli will ride a Desmosedici for the first time during post-race testing at the Spanish circuit on November 6-7.
The team's 2008 Ducatis, dubbed the 'GP8 Sat', will be available for the following Winter Tests.