Used as a key intermediate in the synthesis of nootropic drugs, particularly in the production of piracetam and related racetam family compounds. It plays an essential role in constructing the core structure of these cognitive enhancers by enabling the formation of the 2-oxo-pyrrolidine backbone. The nitrile and isoxazole functionalities allow for selective chemical transformations, making it valuable in pharmaceutical research and development. Its reactivity supports efficient coupling and cyclization steps under controlled conditions, contributing to high yields in active pharmaceutical ingredient (API) manufacturing.