Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the preparation of indole and benzofuran derivatives which exhibit biological activity. Its structure allows for cyclization reactions, making it valuable in creating heterocyclic compounds for drug development. Commonly utilized in research settings for developing potential anti-inflammatory, antimicrobial, and central nervous system agents. Also serves as a building block in organic synthesis due to the presence of both hydroxyl and iodophenyl functional groups, enabling cross-coupling reactions and ring-forming processes.