Used as an intermediate in the synthesis of pharmaceuticals, particularly in the production of active pharmaceutical ingredients (APIs) that require substituted phenylacetonitrile derivatives. It serves in the development of certain analgesic and anti-inflammatory compounds due to its reactive functional groups. The presence of chloro and nitro groups allows for further chemical modifications, making it valuable in medicinal chemistry for building complex molecular structures. Also utilized in research settings for designing novel organic compounds with potential biological activity.