According the World Health Organization (WHO), 1.6 million people die each year as a result of pneumococcal diseases. A new classification of pneumonia, healthcare-associated pneumonia (HCAP), was introduced by the American Thoracic Society (ATS)/Infectious Diseases Society of America (IDSA) in 2005. The definition of HCAP includes hospitalization for two days or more within the preceding 90 days, residence in a nursing home or extended care facility, the use of home infusion therapy (including antibiotics), receipt of chronic dialysis within 30 days, home wound care and a history of infection with a multidrug-resistant pathogen in a family member. Patients with HCAP are characterized by an older age, with increased risk factors for infection with drug-resistant pathogens and poorer prognosis compared to those with community-acquired pneumonia. Consequently, guidelines recommend the use of empiric broad-spectrum antibiotic therapy in these patients. However, most clinicians do not actually choose such broad-spectrum drugs. GlobalData estimated the pneumonia therapeutics market to be worth $ 2.0bn in 2010. It is forecast to decline at a CAGR of -1.3% to reach $ 1.8bn by 2018, mainly due to patent expiry of lead compounds. Compared to Daptomycin which failed in lung penetration, OxAG 1 with its good activity against Streptococcus, its high solubility and the Vd of 2 should be easily penetrate in the lung and treat pulmonic infections.