Used primarily as a key intermediate in the synthesis of pharmaceutical compounds, particularly in the preparation of indole and indane-based bioactive molecules. Its structure allows for selective functionalization, making it valuable in the development of central nervous system agents, including potential treatments for neurological disorders. Commonly employed in research settings for constructing complex organic frameworks through cross-coupling reactions, especially in the creation of serotonin or dopamine receptor ligands. Also utilized in the production of specialty chemicals and labeled compounds for metabolic studies due to the presence of iodine, which facilitates detection and radiolabeling.