PTP1B-IN-2 is primarily used in research settings to study the inhibition of protein tyrosine phosphatase 1B (PTP1B), an enzyme involved in the regulation of insulin and leptin signaling pathways. By inhibiting PTP1B, this compound helps researchers explore potential treatments for type 2 diabetes and obesity, as PTP1B is known to negatively regulate these pathways. Additionally, it is utilized in biochemical assays to understand the role of PTP1B in cellular processes and to develop therapeutic agents targeting metabolic disorders. Its application extends to drug discovery, where it serves as a tool compound to validate PTP1B as a target for pharmacological intervention.