Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of biologically active compounds that require cyclobutane ring systems. Its functional groups allow for further chemical modifications, making it valuable in medicinal chemistry for building complex molecules. Commonly employed in the preparation of protease inhibitors and other therapeutic agents where structural rigidity is needed. Also utilized in research settings to design analogs for drug discovery and in the creation of chiral building blocks for asymmetric synthesis.