Used primarily as an intermediate in the synthesis of chloramphenicol, a broad-spectrum antibiotic. It serves as a protected or modified form during pharmaceutical manufacturing, allowing for selective chemical transformations. Due to its reduced biological activity compared to chloramphenicol, it is not used directly as a therapeutic agent but plays a key role in the production and purification processes of the active drug. Its stability and solubility properties make it suitable for use in organic synthesis steps involved in antibiotic formulation.