This compound is primarily used in the development of antiviral drugs, particularly for the treatment of viral infections such as hepatitis C. Its mechanism involves inhibiting viral RNA replication, making it effective in reducing viral load in infected patients. Additionally, it is being researched for its potential application in cancer therapy, where it may interfere with the growth of cancer cells by disrupting their RNA synthesis. The azido group in its structure allows for further chemical modifications, enabling the creation of derivatives with enhanced pharmacological properties. This makes it a valuable intermediate in medicinal chemistry for designing new therapeutic agents.