Used primarily in pharmaceutical research as a derivative of thalidomide, this compound serves as a key intermediate in the development of immunomodulatory drugs. It plays a significant role in targeted protein degradation therapies, particularly in the design of cereblon E3 ligase modulators. These modulators are investigated for their ability to treat various cancers, including multiple myeloma and myelodysplastic syndromes, by promoting the degradation of disease-causing proteins. Its hydroxyl group allows for further chemical modifications, enhancing solubility or binding affinity in drug candidates. Due to its biological activity, it is also used in studies exploring anti-inflammatory and anti-angiogenic pathways.