Used as an intermediate in the synthesis of certain pharmaceuticals, particularly in the development of analgesic and anti-inflammatory agents. It plays a role in constructing complex heterocyclic compounds due to the presence of multiple functional groups—carboxylic acid, nitro, and acetamido—which allow for selective chemical modifications. Its methoxy and nitro groups facilitate electrophilic substitution and reduction reactions, making it valuable in medicinal chemistry for building active drug molecules. Also employed in research settings for designing novel compounds with potential biological activity.