Used as an intermediate metabolite in the activation of cyclophosphamide, a prodrug employed in chemotherapy. It forms in the liver upon metabolic conversion of cyclophosphamide and contributes to the drug's cytotoxic effects by alkylating DNA in rapidly dividing cancer cells. Due to its instability and short half-life, it is not administered directly but plays a critical role in the therapeutic action of cyclophosphamide in treating various cancers, including lymphomas, leukemias, and solid tumors. Its formation is essential for the immunosuppressive and antineoplastic activity of the parent compound.