This compound is primarily utilized in the field of medicinal chemistry as a key intermediate in the synthesis of various pharmacologically active molecules. Its spirocyclic structure makes it a valuable building block for developing compounds with potential therapeutic applications, particularly in the design of drugs targeting the central nervous system. The presence of both nitrogen and oxygen atoms in its structure allows for interactions with biological targets, making it useful in the creation of ligands for receptors or enzymes. Researchers often explore its derivatives for their potential in treating neurological disorders, such as anxiety, depression, or pain management, due to its ability to modulate neurotransmitter systems. Additionally, its unique scaffold is investigated for its role in enhancing drug-like properties, such as bioavailability and metabolic stability, in drug discovery programs.