The novel antitumor antibiotic designated herein as BU-3420T of formula CHEM is produced by fermentation of Micromonospora chersina strain M956-1 (ATCC 53710). BU-3420T and its triacetate derivative possess antibacterial and antifungal activity and also inhibit the growth of mammalian tumors such as P388 leukemia in mice.
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