This chemical is primarily utilized in organic synthesis as a building block for more complex compounds. It is often employed in the development of pharmaceuticals, particularly in the creation of indole-based drugs that target neurological and psychiatric disorders. Its structure makes it a valuable intermediate in the synthesis of serotonin receptor agonists and antagonists, which are crucial in treating conditions like depression, anxiety, and migraines. Additionally, it is used in research to study the biological activity of indole derivatives and their potential therapeutic applications. Its bromine and methoxy groups enhance its reactivity, making it a versatile reagent in medicinal chemistry.