Used as a key intermediate in the synthesis of indirubin and indigo derivatives, which are important in pharmaceutical research, particularly in the development of anticancer agents. It plays a role in the preparation of kinase inhibitors due to its structural similarity to natural alkaloids. Also utilized in the production of dyes and pigments for specialty applications in textiles and coatings. Its reactive nitrile and hydroxyl groups allow for further chemical modifications, making it valuable in organic synthesis and medicinal chemistry.