The enzyme is highly specific for ¦Á-D-sedoheptulopyranose 7-phosphate. It requires a divalent metal ion (Zn2+?or Co2+) and an NAD+?cofactor, which is transiently reduced during the reaction. The enzyme is involved in the biosynthesis of C7N-aminocyclitol natural products, such as the valienamine moiety of the antidiabetic drug acarbose and the crop protectant validamycin A.?cf. EC?4.2.3.155, 2-epi-valiolone synthase and EC?4.2.3.154, desmethyl-4-deoxygadusol synthase.