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Who observed that the fungus Rhizopus stolonifer could bring about hydroxylation of steroids?

Answer
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Hint: Scientists at Upjohn Research Laboratories confirmed that microorganisms can hydroxylate steroids (using an unidentified Rhizopus family fungus).

Complete answer:
Peterson and Murray of the Upjohn Research Laboratories stated in April 1952 that using microorganisms, steroids could be 11 alpha-hydroxylated. A typical mould of the order of Mucorales (Rhizopus arrhizus) oxidises progesterone to 11 alpha-hydroxyprogesterone and to 6 alpha-, 11 alpha-di-hydroxyprogesterone progesterone.

The Syntex group performed microbial oxidation of progesterone to 11 alpha-hydroxyprogesterone at a yield of 45 percent using an unidentified Rhizopus family fungus. The same researchers modified 11 alpha-hydroxyprogesterone pregnane-ll, 20-dion-3a-ol acetate which also had previously been converted to cortisone.

A variety of various functional methods for the synthesis and processing of 11-oxygenated steroids are available today. They have been partly responsible for the widespread cortisone availability. Cortisone can be found in every hospital and corner drugstore in this country and in many other countries today.

Additional information:
Rhizopus stolonifer is popularly referred to as black bread mould. It is a member of Zygomycota and has been considered the most important species of the Rhizopus genus. It is one of the world's most common fungi and has a global distribution although it is found most frequently in tropical and subtropical regions. It is a natural agent of foods stored for decomposition. As with other members of the Rhizopus family, R. stolonifer grows quickly, often indoors.

Note: R. stolonifer is economically important as a post-harvest storage agent for decay and is also used commercially for the production of high purity fumaric acid and lactic acid. R. stolonifer and other Rhizopus species also produce ethyl alcohol which is the main fermentation product.