Strain No. 15748, identifies as Streptomyces lydicus, produces a new antibiotic malioxamycin. Malioxamycin is a water-soluble, amphoteric antibiotic with low molecular weight, having a valine and a malic acid moieties in its structure. It gave a positive ninhydrin and ferric chloride reactions. Malioxamycin inhibited the growth of some Gram-negative bacteria by acting on peptidoglycan synthesis in the cell wall and produced spheroplasts from those sensitive bacteria.