Used as a key intermediate in the synthesis of β-lactam antibiotics, particularly penems and carbapenems, which are potent broad-spectrum antimicrobial agents. Its strained azetidine ring structure enables high reactivity in ring-opening and acylation reactions, making it valuable in constructing complex antibiotic scaffolds. Also explored in medicinal chemistry for developing novel enzyme inhibitors and central nervous system agents due to its ability to mimic peptide bonds and interact with biological targets.