Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of active pharmaceutical ingredients (APIs) where cyclic ester structures are required. Its keto and ester functional groups allow for versatile chemical transformations, such as reductions, alkylations, and condensation reactions. Commonly employed in the preparation of gamma-amino acids and lactam derivatives, which are structural motifs in various bioactive molecules. Also utilized in the manufacture of fine chemicals and specialty polymers due to its ability to undergo ring-opening and functional group interconversion under mild conditions.