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Magnesium iodide is used as reagents and intermediates in pharmaceuticals. It is useful in Baylis-Hillman reactions.
Michael D. Ganton.; Michael A. Kerr. Magnesium Iodide Promoted Reactions of Nitrones with Cyclopropanes:? A Synthesis of Tetrahydro-1,2-oxazines.J. Org. Chem. 2004, 69 (24),8554-8557.