This compound is primarily utilized in the synthesis of pharmaceuticals, particularly in the production of cysteine derivatives and peptide-based drugs. Its chiral structure makes it valuable in creating enantiomerically pure compounds, which are essential for developing drugs with specific biological activities. It is also used in research settings to study enzyme mechanisms and protein interactions due to its ability to mimic natural thiol-containing amino acids. Additionally, it serves as a building block in organic synthesis for constructing complex molecules with potential therapeutic applications.