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 creating analogs and derivatives. Commonly employed in the preparation of enzyme inhibitors and receptor modulators due to its rigid cyclic structure and ability to influence stereochemistry in drug molecules. Also utilized in the design of prodrugs where controlled release of active agents is needed.