This compound is primarily utilized in the field of medicinal chemistry as a key intermediate in the synthesis of various biologically active molecules. Its structure, featuring an isoindole moiety, makes it valuable for developing compounds with potential therapeutic effects, particularly in targeting neurological disorders and psychiatric conditions. Researchers often employ it in the design of ligands that interact with specific receptors in the brain, aiding in the development of drugs for conditions like anxiety, depression, and neurodegenerative diseases. Additionally, its acetic acid group allows for further chemical modifications, enabling the creation of derivatives with enhanced pharmacological properties. Its application extends to the study of enzyme inhibition and the exploration of novel drug candidates in preclinical research.