Used primarily as a key intermediate in the synthesis of indomethacin, a nonsteroidal anti-inflammatory drug (NSAID). Its structure allows for selective halogenation and ester functionality, making it valuable in pharmaceutical research for developing analogs with improved potency and reduced side effects. Also employed in the preparation of other indole-based bioactive compounds targeting pain, inflammation, and certain cancers. Its stability and reactivity profile support use in multi-step organic syntheses, particularly in medicinal chemistry workflows.