Labelling experiments are described that identify three new compounds, N*-(2-carboxyethyl)arginine, 5-guanidino-(2-oxoazetidin-l-yl)pentanoic acid, and 3-hydroxy-5-guanidino-2-( 2-oxoazetidin-I -yl)pentanoic acid as biosynthetic precursors of proclavaminic acid and hence clavulanic acid in Streptomyces clavuligerus ATCC 27064 and a new amidino hydrolase, which hydrolyses 3-hydroxy-5-guanidino-2-(2-oxoazetidin-l -yl)pentanoic acid to proclavaminic acid has been characterised.