Used primarily in pharmaceutical research as an intermediate in the synthesis of bioactive compounds. It serves as a building block for developing indazole-based molecules with potential therapeutic properties, including anti-inflammatory, anticancer, and kinase inhibitory activities. Its iodinated structure allows for further functionalization through cross-coupling reactions, making it valuable in medicinal chemistry for structure-activity relationship studies. Also utilized in the development of novel psychoactive substances, which has led to regulatory scrutiny in some regions due to misuse potential.