Used as an intermediate in the synthesis of pharmaceuticals, particularly in the production of nootropic and anticonvulsant drugs. It plays a key role in the development of racetam-family compounds, which are known to enhance cognitive function. Due to the presence of both nitrile and carbonyl functional groups, it is highly reactive and suitable for various organic transformations, making it valuable in medicinal chemistry for building complex heterocyclic structures. Its derivatives are investigated for neuroprotective effects and potential use in treating neurological disorders.