A process for preparing the compound (11 beta ,16 beta )-21-(acetyloxy)-11-hydroxy-2'-methyl-5'H-pregna-1,4-dieno[17,16-d]oxazole-3,20-dione (INN deflazacort) which comprises reacting (11 beta ,16 beta )-11,21 -dihydroxy-2'-methyl-5'H-pregna-1,4-dieno[17,16-d]oxazole-3,20-dione with acetic anhydride in a suitable organic solvent in the presence of a basic catalyst and water.
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