This compound is primarily utilized in pharmaceutical research and development due to its potential as a building block for active pharmaceutical ingredients (APIs). It serves as a key intermediate in the synthesis of various heterocyclic compounds, which are often explored for their biological activities. Researchers investigate its derivatives for potential applications in treating diseases, particularly in areas like oncology and inflammation, where indazole-based compounds have shown promise. Additionally, it is studied for its role in designing inhibitors targeting specific enzymes or receptors, contributing to the development of novel therapeutic agents. Its structural framework makes it a valuable scaffold in medicinal chemistry for optimizing drug candidates.