Used as a key chiral building block in the synthesis of pharmaceuticals, particularly in the development of biologically active compounds that require defined stereochemistry. Its strained cyclobutane ring and functional groups (hydroxyl and ester) allow for selective transformations, making it valuable in medicinal chemistry for constructing complex molecules such as enzyme inhibitors or receptor modulators. Commonly employed in the preparation of drug candidates targeting central nervous system disorders and metabolic diseases due to its conformational rigidity and ability to mimic peptide bonds or natural substrates.