Twenty-six strains of Penicillium islandicum Sopp were tested for production of a chlorine-containing peptide (Cl-peptide), which is a hepatotoxin. Highest levels of the mycotoxin were produced in a modification of Wickerham medium. The mycotoxin was isolated by adsorption on charcoal and, after washing the charcoal with acetone-water (1:1), was eluted into n-butanol. Further purification was accomplished by gel filtration. Maximum yields were 10 to 20 mg of toxin per liter of culture filtrate.