Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of anxiolytic and sedative agents. It serves as a building block for compounds that act as positive allosteric modulators of GABAA receptors, which are targeted in treatments for anxiety, insomnia, and epilepsy. Its structure allows for efficient derivatization, making it valuable in medicinal chemistry for optimizing drug potency and selectivity. Also employed in research settings to develop novel heterocyclic compounds with potential biological activity.