3'-Demethoxy-3'-hydroxystaurosporine, 1 (CGP 58 546), a novel staurosporine analogue, was isolated from a mutant of Streptomyces longisporoflavus R19 blocked in the last step of the biosynthetic pathway. CGP 58 546 was less potent than staurosporine, but it showed a more selective inhibition pattern against various subtypes of protein kinase C.