Used primarily as a key intermediate in the synthesis of pharmaceutical agents, particularly antipsychotic drugs. Its structure serves as a building block for compounds that modulate dopamine receptors in the brain. It is especially valuable in the production of risperidone and similar active pharmaceutical ingredients. The presence of the chlorine atom and the isoxazole ring enhances metabolic stability and binding affinity in final drug products. Widely utilized in research and development within medicinal chemistry for designing novel neuroactive compounds.