Cephalosporin C demand is increasing worldwide because of its enhanced antibacterial spectrum that it can be used to treat diseases and infections caused by Gram positive/or Gram negative bacterial strains. Cephalosporin C is easily produced from the fungus Acremonium chrysogenum by the process of fermentation in a bioreactor under optimum reaction conditions to obtain maximum yield of the antibiotic. Additional chemical and structural modifications in the existing cephalosporin C could further enhance its antimicrobial spectrum.