This compound is primarily utilized in the synthesis of heterocyclic compounds, which are essential in the development of various pharmaceuticals. It serves as a key intermediate in the production of drugs targeting inflammation and pain, due to its structural similarity to pyrazolone derivatives known for their analgesic and anti-inflammatory properties. Additionally, it is employed in organic synthesis for creating complex molecules used in research and development of new therapeutic agents. Its hydroxyl and keto functional groups make it a versatile building block in medicinal chemistry, particularly for designing compounds with potential biological activity.