Used primarily as an intermediate in organic synthesis, especially in the preparation of pharmaceuticals and bioactive compounds. Its structure contains both iodo and nitro functional groups, making it suitable for cross-coupling reactions such as Suzuki or Heck reactions, where the iodo group acts as a reactive site. The nitro group can be reduced to an amine, enabling further derivatization for use in medicinal chemistry. The hydroxymethyl group provides an anchor point for attachment to polymers or other molecular scaffolds, useful in the development of probes or drug delivery systems. Commonly employed in the synthesis of antimicrobial agents and enzyme inhibitors due to the electron-withdrawing nature of the nitro group and the heavy atom effect from iodine, which can enhance biological activity.