Used as a key intermediate in the synthesis of various pharmaceuticals, particularly in the production of nonsteroidal anti-inflammatory drugs (NSAIDs) and antidiabetic agents. It serves as a building block for heterocyclic compounds due to its reactive amino and carboxylic functional groups, enabling easy modification for drug development. Also employed in the preparation of dyes and agrochemicals, where its thiophene core contributes to the stability and bioactivity of the final product. Its derivatives show potential in antimicrobial and antitumor research, making it valuable in medicinal chemistry.