2-Hydroxybenzoyl Chloride reacts with cinnamic acid chloride to form new series of compounds, cinnamamide and 2-hydroxy-N-arylbenzamide derivatives which exhibits anti-proliferative effect on isolated pulmonary arterial smooth muscle cells. Also, it is an intermediate used in the synthesis of Merethoxylline Procaine (M225580), which is a mercurial diuretic.