A process for preparing the antibiotic U-59,760. The process is a microbiological process using a biologically pure culture of the novel microbe Saccharopolyspora hirsuta strain 367, NRRL 12045. The antibiotic produced by the process is active against various microorganisms, for example, Staphylococcus aureus, Streptococcus pyogenes, and Klebsiella pneumoniae. Thus, antibiotic U-59,760 can be used in various environments to eradicate or control such bacteria.