Polyprenoids constitute a diverse, widely distributed group of natural products derived biologically from (3fi)-mevalonic acid1,2 (1). Based on geochemical3 and other studies,4 it was inferred that the biosynthetic processes of polyprenoids evolved in the very early stages of evolutionary development.5,6 Although polyprenoids play a vital role in numerous life processes, e.g., as sex or corticosteroidal hormones, as bile acids, in vision, in defense mechanisms, etc., it appears that their primary biological function is to provide a structural component(s) of cell membranes.6Many eucaryotes, and particularly higher species, produce a variety of 3-oxygenated triterpenes and sterols.1,2 The 3-oxygenated triterpenes are derived from squalene1,2 (2) which is converted to 2,3(5)-oxidosqualene7 (3). The enzymatic cationic cleavage of the oxygen-C-2 bond of 3 generates an electron deficiency at C-2 and precipitates the cyclization process. Depending on the characteristics of the enzyme system of the particular species, different products may be formed.1,2,8,9 In Fusidium coccineum, cyclization10 of 3 is presumed to result in the cation8 4a or its transiently stabilized equivalent9,11 4b, which loses the C-17 proton12 to yield the parent protosterol13 (5). The protosterol13 ( 5) is then further metabolized to fusidic acid (6). This hypothesis is supported by the results of studies on the mode of incorporation of C-2,12,14 C-4,11 and C-515 hydrogen atoms of MVA into 6 and by the