Deacetylcephalosporin C negative mutants, lacking a certain step in the pathway of deacetylcephalosporin C biosynthesis, were obtained from the deacetylcephalosporin C producing mutant No. 40 of Cephalosporium acremonium by treatment with N-methyl-N' nitro-N-nitrosoguanidine. Among these mutants, the strain No. 40-20 was found to mainly accumulate a cephalosporin compound other than deacetylcephalosporin C and cephalosporin C. The cephalosporin was isolated as crystals from the culture broth of the mutant No. 40-20, and identified as deacetoxycephalosporin C, possessing a D-α-aminoadipyl side chain at C-7, by physical, chemical and biological methods. The profile of deacetoxycephalosporin C fermentation and the examination of the biochemical reduction of deacetylcephalosporin C led us to the conclusion that deacetoxycephalosporin C would be produced through de novo synthesis by this mutant.