Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the production of antidiabetic drugs such as pioglitazone and rosiglitazone. It serves as a building block for thiazolidinedione derivatives, which act as insulin sensitizers in type 2 diabetes treatment. Also employed in the development of agrochemicals and specialty organic compounds due to its reactive carboxylic acid group and aromatic thiophene ring. Its chloro-thienyl structure enhances binding selectivity in medicinal chemistry applications.