Used as a key intermediate in the synthesis of pharmaceutical compounds, particularly in the development of indole-based drugs targeting neurological and psychiatric disorders. Its structure allows for selective modification in drug design, making it valuable in creating serotonin receptor modulators. Also employed in research settings for labeling and tracing biomolecules due to the presence of iodine, which facilitates detection in imaging studies. Commonly utilized in coupling reactions to build complex heterocyclic systems in medicinal chemistry.