Used primarily in the synthesis of pharmaceuticals, this compound serves as a key intermediate in the production of various drugs, particularly those targeting neurological and psychiatric conditions. Its structure is valuable in creating active pharmaceutical ingredients (APIs) that require a pyrrolidine dione core. Additionally, it finds application in organic synthesis for constructing complex molecules, especially in the development of heterocyclic compounds. Its reactivity and stability make it a versatile building block in medicinal chemistry and drug discovery processes.