Used primarily in organic synthesis, this compound serves as a key intermediate in the production of various pharmaceuticals. It is particularly valuable in the development of indole-based drugs, which are known for their diverse biological activities. The compound's structure allows it to act as a building block for creating molecules with potential therapeutic effects, such as anti-inflammatory, anticancer, and antimicrobial agents. Additionally, it is utilized in research laboratories for studying indole derivatives and their interactions with biological systems, contributing to advancements in medicinal chemistry.