Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the production of nootropic drugs like piracetam and related racetam family compounds. It plays a crucial role in constructing the core structure of these cognitive enhancers by enabling specific side-chain modifications. Its aldehyde functional group allows for condensation and cyclization reactions, making it valuable in heterocyclic chemistry for developing biologically active molecules. Commonly employed in research settings for designing new neuroprotective agents and studying central nervous system stimulants.