Used as a chiral building block in the synthesis of pharmaceuticals, particularly in the development of biologically active compounds where stereochemistry plays a critical role. Its rigid cyclobutane backbone and functional groups (amino and hydroxyl) allow for selective derivatization, making it valuable in medicinal chemistry for designing enzyme inhibitors or receptor modulators. Commonly employed in research settings to construct complex molecules with defined three-dimensional structure, especially in CNS-active drugs and antiviral agents.