Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of pyrazole-based drugs which exhibit anti-inflammatory, analgesic, and antimicrobial activities. It serves as a building block in medicinal chemistry due to its functional groups that allow for easy modification and derivatization. Its hydroxyethyl and carboxylic acid moieties enable conjugation or salt formation, improving solubility and bioavailability in drug formulations. Also employed in research for designing enzyme inhibitors and heterocyclic compounds with potential therapeutic effects.