Used as a coenzyme in various biochemical reactions, particularly in photosynthesis and cellular respiration. It plays a critical role in the transfer of electrons and hydrogen ions in metabolic pathways, such as the pentose phosphate pathway, which is essential for the production of nucleotides and NADPH. NADPH, derived from this compound, is vital for reductive biosynthesis, including the synthesis of fatty acids and steroids, and for combating oxidative stress by regenerating glutathione. It is also employed in enzymatic assays and research studies to understand redox reactions and metabolic processes. In industrial applications, it is utilized in the production of pharmaceuticals and bioactive compounds.