This compound is primarily utilized in the field of biochemistry and medical research, particularly in studies related to thyroid function and hormone synthesis. It serves as a key intermediate in the production of thyroid hormones, such as thyroxine (T4), due to its structural similarity to tyrosine, which is essential for hormone formation. Additionally, it is used in radiolabeling techniques for diagnostic imaging, helping to assess thyroid gland activity and detect abnormalities like hyperthyroidism or hypothyroidism. Its iodinated structure also makes it valuable in the development of contrast agents for medical imaging.