Widely used in pharmaceuticals, this compound serves as a key intermediate in the synthesis of nootropic drugs, particularly those related to piracetam and other racetam-class cognitive enhancers. Its structure supports the development of agents that influence neurotransmitter systems involved in memory, learning, and neuroprotection. It is also explored for its potential in improving cognitive function in neurodegenerative conditions. Due to its functional groups, it participates in various derivatization reactions, making it valuable in medicinal chemistry for designing analogs with improved bioavailability and blood-brain barrier penetration.