Terramycin is an antibiotic often found in combination with polymyxin B sulfate that fights microbial infections of the eye by attacking bacterial cell walls. According to the National Institutes for Health, terramycin is especially effective against Koch-Weeks bacillus and Pseudomonas aeruginosa, which are two of the diseases found in eye infections. Although the NIH states there have been no findings of side effects from using the product, it does issue a few warnings.
Secondary Infection
One possible side effect possible from the application of Terramycin is from a secondary infection. The NIH warns if the tip of the Terramycin ointment tube comes into contact with any other surface, a possible secondary infection could develop in the eye and complicate the healing process.
Partial Treatment Danger
Use the full course of the Terramycin, even if the eye infection seems to have gone away. According to Drugs.com if the full course of medication prescribed isn't followed and the infections returns, it will be much harder to stop.
Allergic Reactions
Allergic reactions sometimes occur as a side effect to a component in a treatment. If a rash or hives break out after applying Terramycin or if you have trouble breathing or have swelling of parts of your face after use, Drugs.com advises that you contact your doctor immediately.
Rare Hypersensitivity
According to the NIH website, there could be inflammatory reactions because of individual hypersensitivity to Terramycin ointment. Although possible, the NIH says such reactions are extremely rare.



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