Used as a key intermediate in the synthesis of biologically active indole derivatives, particularly in pharmaceutical research. It serves in the development of kinase inhibitors and antitumor agents due to the presence of reactive sites for cross-coupling reactions. The iodo and tosyl groups allow selective functionalization through palladium-catalyzed reactions, making it valuable in constructing complex heterocyclic compounds for drug discovery. Also employed in the preparation of serotonin receptor modulators and other neuroactive compounds.