A new antibiotic U-62162 has been isolated from the fermentations of Streptomyces verdensis Dietz, sp. n. (UC-8157). The compound has been characterized and its gross structure has been elucidated. The antibiotic inhibited the growth of Gram-positive bacteria (particularly Staphylococcus aureus) but was inactive in experimentally infected animals. In this paper we report the fermentation conditions, the isolation procedure and the chemical and biological properties of this antibiotic.