This compound is a specialty chemical intermediate primarily used in pharmaceutical synthesis for prodrug development. It is the 4-nitrophenyl carbonate ester of 1-hydroxyethyl isobutyrate, acting as an activated electrophile. It reacts readily with primary and secondary amines to form 1-(isobutyryloxy)ethyl carbamate prodrugs, which provide controlled enzymatic release of the parent amine API, improving solubility, bioavailability, and pharmacokinetics.

Additionally, it finds applications in advanced organic synthesis requiring selective carbonate formation or functional group protection.