The present invention teaches a new antibiotic nanaomycin E represented by the formula: <IMAGE> Nanaomycin E is active against Gram-positive bacteria, Trichophyton and Mycoplasma and may be used as antibacterial and therapeutic agents for humans and animals. Nanaomycin E is also a useful starting material for the preparation of nanaomycin A which latter nanaomycin has the highest activity among the various nanaomycin-type compounds. Nanaomycin E is produced by fermentation of a microorganism belonging to the genus Streptomyces and capable of producing nanaomycin E, especially Streptomyces rosa variant notoensis (FERM-P 2209; ATCC 31135) and recovering the same from the fermented liquor.
