The deployment of recombinant DNA techniques to beta-lactam antibiotic prod
ucing fungi and various Streptomyces spp. have made it possible to understa
nd in considerable details, the biosynthetic pathways, the mechanism of syn
thesis, and the genes involved in the process, As a result, it is becoming
possible to manipulate the individual gene or cluster of genes and thereby
the pathways in order to develop microbes which can produce beta-lactams at
rates higher than the traditional strains. By the judicious incorporation
of genes such as cef E of Streptomyces clavuligerus into Penicillium chryso
genum it has been possible to produce the cephalosporin intermediate, 7-ami
no-3-deacetoxycephalosporanic acid (7-ADCA) in the fermenters. The incorpor
ation of VHb gene in Acremonium chrysogenum increased the productivity of t
he strain for cephalosporin C, The understanding of the substrate specifici
ty of pcb C genes has enabled the synthesis of complex beta-lactams from a
variety of synthetic tripeptides, The future years are expected to witness
the mixing, shuttling, and reshuffling of bacterial and fungal genes among
themselves and the maximization of expression of the target gene(s) by modi
fying the regulatory and the control mechanisms of the biosynthetic pathway
s in order to synthesize the target beta-lactam molecules at economic costs
by engineered microbes.