Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of antiviral and antidiabetic agents. Its structure allows for easy functionalization, making it valuable in medicinal chemistry for building complex heterocyclic systems. Commonly employed in ring-opening, ester hydrolysis, and reduction reactions to generate bioactive molecules. Also utilized in the preparation of prodrugs due to the presence of both ester and hydroxyl groups, which can be tailored for improved metabolic stability and absorption.