Interesting solution, Cyrax, but not quite satisfying for two reasons: benzyloxyacetylchloride is expensive and not broadly available, and catalytic hydrogenations, especially under pressure, are not generally available in smaller labs.
The compound of interest can easily be converted to 4-phenyl-4-oxazolin-2-one and substituted analogues which might have some pharmacological activity.
Dr. Heckyll & Mr. Jive by Men at Work
...tells my tale.