7-Acylamino and 7-amino-3-(substituted)carbonylamino-3(or 2)-cephem-4-carboxylic acids and esters thereof, which are useful as antibiotics or as intermediates in preparing antibiotic substances respectively, are prepared from 7-acylamino-3-azidocarbonyl-2(or 3)-cephem-4-carboxylic acid esters via the corresponding thermally derived 3-isocyanatocephem derivatives.