This compound is primarily utilized in the field of organic synthesis, where it serves as a key intermediate in the production of more complex molecules. Its structure, featuring a chloroacetamide group and a spirocyclic diazadione moiety, makes it valuable for constructing pharmacologically active compounds. It is often employed in the development of potential drug candidates, particularly in the synthesis of molecules targeting enzymes or receptors involved in various biological pathways. Additionally, its reactive sites allow for further functionalization, enabling researchers to explore diverse chemical modifications for specific applications in medicinal chemistry and drug discovery.