Structural elucidation of an intensely blue fluorescent compound (A) formed from sepiapterin by Bacillus subtilis is described. The structure of the catabolite (A) was found to be 2-amino-6-(1-carboxyethoxy)-4(3H)-pteridinone (9) from both spectroscopic and degradation studies. This was confirmed by an unambiguous synthesis of 9. The stereochemical structure of the side chain at the 6-position of A was confirmed to be the L(or S) configuration, as in sepiapterin, by analysis of the lactic acid formed from A on acid hydrolysis. This suggests that the side chain is rearranged intact during the catabolic conversion of sepiapterin. A possible mechanism for the conversion is discussed.