Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of antidiabetic agents. It plays a significant role in the preparation of DPP-4 inhibitors, which are used to manage type 2 diabetes by enhancing insulin secretion and reducing glucose production. Its spirocyclic structure provides structural rigidity that improves metabolic stability and target selectivity in drug molecules. Commonly employed in research and industrial settings for constructing complex heterocyclic systems with biological activity.