Used primarily as an intermediate in the synthesis of pharmaceutical compounds, particularly in the development of alkylating agents for cancer treatment. Its reactivity allows it to be incorporated into molecules designed to target and modify DNA in rapidly dividing cells. Due to its chloroethyl functional groups, it participates in reactions that form covalent bonds with nucleic acids, making it valuable in the preparation of cytotoxic agents. Handle with care, as it may exhibit toxic and mutagenic properties.