Nikkomycin Z (SP 920704) is an orally active antifungal agent licensed to Shaman Pharmaceuticals from Bayer. It is currently undergoing phase I trials in the UK as monotherapy for coccidioidomycosis and preclinical testing in combination with azoles or echinocandins in the USA for the indication of endemic mycoses.Shaman Pharmaceuticals have filed an IND (Investigational New Drug) application in the US for the treatment of systemic fungal infections. Nikkomycin Z is a competitive chitin synthase inhibitor that has been evaluated in mouse models of coccidioidomycosis, histoplasmosis and blastomycosis. The limited toxicology tests conducted so far suggest that Nikkomycin Z is well tolerated at the dosages used.Nikkomycin Z is the first of a new class of antifungals (chitin synthesis inhibitors) to be developed but its poor potency means it will probably be used in combination with azoles or candins, except for coccidioidomycosis.