Used primarily as a key intermediate in the synthesis of pharmaceuticals and fine chemicals, particularly in the development of serotonin receptor agonists and hallucinogenic compounds such as certain substituted tryptamines and phenethylamines. Its iodinated aromatic structure allows for further functionalization through cross-coupling reactions, making it valuable in medicinal chemistry research. Also employed in the preparation of radiolabeled compounds for biochemical tracing and imaging studies due to the presence of iodine, which can be substituted with radioactive isotopes.