This compound is primarily used in biochemical research as a fluorogenic substrate for proteases, particularly those involved in enzymatic assays. It is specifically designed to measure the activity of enzymes like furin or proprotein convertases, which cleave peptide bonds at specific sites. When the enzyme cleaves the substrate, it releases the AMC (7-amino-4-methylcoumarin) group, which fluoresces under UV light. This property allows researchers to quantitatively analyze enzyme kinetics, inhibition, and activation in real-time. It is particularly valuable in studying cellular processes, drug development, and understanding disease mechanisms related to protease activity.