Used as an intermediate in the synthesis of pharmaceutical compounds, particularly in the production of anti-inflammatory and analgesic agents. It is especially utilized in pathways leading to benzofuran structures and derivatives of anthranilic acid. The structure featuring acetamido and chloro groups makes it an excellent starting material for nucleophilic substitution reactions or condensations to form biologically active compounds. Additionally, it serves as a precursor in the development of new drugs targeting COX or LOX enzymes, which are involved in inflammatory processes in the body.