Used as a chiral building block in the synthesis of pharmaceuticals, particularly in the development of neuroactive compounds and nootropics. Its cyclic amide structure provides stability and conformational rigidity, making it valuable in drug design for enhancing metabolic stability and bioavailability. Commonly employed in asymmetric synthesis due to its stereochemical purity, it helps in creating enantiomerically pure drugs where the (S)-configuration is critical for biological activity. Also utilized in the preparation of protease inhibitors and cognitive enhancers.