Y16 is widely used in biochemical research as a selective inhibitor of the protein-tyrosine phosphatase PTP1B. This makes it a valuable tool in studies related to insulin signaling and glucose homeostasis, where PTP1B acts as a negative regulator. By inhibiting PTP1B, Y16 enhances insulin receptor phosphorylation and downstream signaling, which can improve insulin sensitivity in cellular models. It is also employed in cancer research due to PTP1B's involvement in certain oncogenic pathways, particularly those related to HER2/Neu and EGFR signaling. Y16 has been used in cell-based assays to investigate the role of PTP1B in metabolic disorders, type 2 diabetes, and breast cancer progression. Its cell-permeable properties allow for effective use in live-cell experiments, making it suitable for both mechanistic studies and early-stage therapeutic exploration.