The methods of preparing new derivatives of known substrates were applied to modify organic compounds like Carbohydrates, steroids, sterols, terpenoids, flavonoids, alkaloids, antibiotics, amino acids etc. Such alteration encompasses many changes in the substrate moiety by the addition, degradation or modification. When basic structure of resultant molecule remains unaltered, the microbial biotransformation can be applied for formation of desired derivatives of precursor. <strong>Aim:</strong> To determine the<em> in-vitro</em> anti-dandruff activity of biotransformed material of <em>Nicotiana tabacum</em> leaves. <strong>Material and Method:</strong> The collected leaves about 200 g were macerated in cow urine (1 L) for time period of 28 days. After the completion of this time period, the biotransformed material was harvested, lyophilized and powdered (20 g). Regular aqueous extract of the leaves was also prepared for comparative study. Various concentrations, such as 12.5, 25, 50, 100, 500 mg/ml, of aq. extract and biotransformed material of Nicotiana tabacum leaves were prepared and tested for <em>in vitro</em> anti dandruff activity using strain of <em>Malassezia</em> (Pityrosporum) <em>furfur</em> and compared with marketed ayurvedic, homoepathic and allopathic (Ketoconazole 2 %) formulations.<strong> Result:</strong> The regular extract and the biotransformed material were screened for phytochemicals. It showed the presence of alkaloids, prominently. The strains responsible for the biotransformation process were also evaluated and identified as <em>Bacillus licheniformis</em> and <em>Bacillus megaterium</em>. The biotransformed material of <em>Nicotiana tabacum</em> leaves shows promising effect against <em>Malassezia</em> (Pityrosporum) <em>furfur</em>, in terms of zone of inhibition of about 7 mm at 100 mg/ml 26 mm at 500 mg /ml, respectively. The results were found promising as compared to the regular aqueous extract, marketed formulations including Ketoconazole 2 % preparation. <strong>Conclusion</strong>: The study shows the improved potential of the cow urine biotransformed material over the normal extract of the same plant. It was evident that the dandruff growth was significantly inhibited by treatment with biotransformed material. Hence, <em>in vitro</em> studies of microbial biotransformed <em>Nicotiana tabacum</em> leaves was found to have a potential anti-dandruff activity between 100 mg/ml to 500 mg/ml, compared with its aqueous extract, marketed ayurvedic, homoepathic and allopathic formulations.
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