This compound is a key intermediate primarily used in the synthesis of pharmaceutical compounds, particularly beta-lactam antibiotics. Its beta-lactam ring structure is essential for the antibacterial activity of the final drugs, which inhibit bacterial cell wall synthesis. The 1-benzyl and 3-(1-hydroxyethyl) groups enhance its reactivity and stability, making it valuable for further chemical modifications in producing complex molecules that target a wide range of bacterial infections. Researchers also explore its use in developing novel antimicrobial agents against drug-resistant bacteria.