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Ethanol is of great importance in pharmaceutical manufacturing. It is used as a solvent, as many drugs and preparations require ethanol for dissolution and dilution during production. Ethanol is also employed in the extraction and purification of pharmaceuticals; for example, ethanol extraction is used to isolate active ingredients from plants for drug production in the pharmaceutical industry. Furthermore, ethanol can act as a co-solvent for certain medications, enhancing their stability and efficacy.