7 ACA or 7 Aminocephalosporanic acid is made from Cephalosporin C and is a key intermediate for synthesizing cephalosporin antibiotics, the B lactam antibiotics family. 7 ACA is a starting compound for the production of various semi-synthetic cephalosporins of different generations. These compounds are made by modification of the side chains at positions 3 and 7 of 7-aminocephalosporanic acid (7 ACA). It is used to produce many cepholosporins pharmaceutical bulks, such as cefazolin sodium, cefotaxime sodium, ceftriaxone sodium, cefoperazone sodium, ceftazime sodium, cefuroxime sodium and so on. Originally, the commercial processes were based on solvent extraction. 7 Aminocephalosporanic acid (7 ACA), until recently it has been produced by chemical deacylation of the natural antibiotic cephalosporin C. The disadvantage of this method is multiple steps, low yield, use of various organic solvents and treatment of a lot of toxic waste. Alternatively, 7 ACA can be produced by a simpler and more environmentally sound process using a bio-catalytic method based on DAAO and glutaryl hydrolase for enzymatic deacylation of CPC to 7 ACA. However, few enzymes capable of this direct deacylation have been discovered, probably because of the unusual nature of the D aminoadipyl side chain of cephalosporin C. Enzyme engineering is a fast growing application in the pharmaceutical market. Cephalosporin is defined as any of a group of broad-spectrum derived from species of fungi of the genus Cephalosporium and is related to the penicillins in both structure and mode of action but relatively penicillinase resistant antibiotics. These antibiotics have low toxicity for the host, considering their broad antibacterial spectrum. They have the active nucleus of beta lactam ring which results in a variety of antibacterial and pharmacologic characteristics when modified mainly by substitution at 3 and 7 positions. Their antibacterial activities result from the inhibition of mucopeptide synthesis in the cell wall. They are widely used to treat gonorrhea, meningitis, pneumococcal, staphylococcal and streptococcal infections. The cephalosporin class of antibiotics is usually divided into generations by their antimicrobial properties. Three generations of cephalosporins are recognized and the fourth has been grouped. Each newer generation of cephalosporins has broader range of activity against gram-negative organisms but a narrower range of activity against gram positive organisms than the preceding generation. The newer agents have much longer half-lives resulting in the decrease of dosing frequency. Accordingly, the third-generation cephalosporins can penetrate into tissues well, and thus antibiotic levels are good in various body fluids. The cephalosporins belong to the family of ? lactam antibiotics. These are named after the reactive moiety of the compounds, the ? lactam ring. In CPC, the four membered ? lactam ring is coupled to a six membered dihydrothiazine ring to form the nucleus, 7 aminocephalosporanic acid (7 ACA), and a side chain, ? aminoadipic acid, is coupled via an amide bond to the nucleus. The total world market for cephalosporins was estimated to be approximately 10 billion US$ in 2000, and ? lactam antibiotics in general accounting for over 65% of the world antibiotic market. According to IMS Health, cephalosporins as single preparation and in combination preparations are ranked 10 in the global drug sales in 2003 by an estimated sales of 8.3 billion US$, the highest ranking for any of the anti infectives classes. The size of the Indian pharmaceutical industry is poised to treble over the decade. It is expected to grow from about USD 6.3 billion in 2005 to about USD 20 billion by 2015, registering a CAGR of 12.3% and outperforming the global average of 9% in 2009 to 10. In terms of scale, the Indian pharmaceutical market is the 14th largest in the world but will graduate to the top 10 by 2015, overtaking Brazil, Mexico, South Korea and Turkey. India’s growth to a USD 20 billion market by 2015 indicates that the incremental growth of USD 14 billion over the coming decade is likely to be the third highest in the world. Demand for 7 ACA is principally determined by the market sales scale of downstream products. In terms of developing trend, ceftriaxone and cefazolin were two mainstream products of 7 ACA. Therefore, the market change in these two products directly affected the change in production-sales relations of 7 ACA. After dosage conversion, according to estimate the use of 7 ACA for making certriaxone accounted for 47.7% of the total consumption of 7 ACA. Obviously, ceftriaxone had become the biggest consumer of cephalosporins raw materials of 7 ACA series, followed by cefazolin. Not only ceftriaxone boosted morale, but cefotaxime, cefazolin sodium, cefoperazone sodium, cefoperazone sulbactam, ceftazidime, cefuroxime, etc were also the direct contributors of the family. At present, major players in the market include Shijiazhuang Pharmaceutical Group Co. Ltd., Fujian Fukang Pharmaceutical Group Co. Ltd., Shanxi Weiqida Pharmaceutical Group Co. Ltd. and Zhuhai United Labs Co. Ltd. At present there is no production of 7 ACA in the country and the demand is met by imports. There is a good scope for capacity creation in India. New entrepreneurs should venture into this sector.