The invention comprises intraarticular delivery of a novel stable microparticles based viscosupplementary pharmaceutical compositions containing Simvastatin or its pharmaceuticalkly acceptable form(s) and methods of making the same. Microparticles of invention are prepared by solvent evaporation method and suspended in a viscosupplementary gel base and evaluated for their ability to promote formation of bone regenerating cells. The intraarticular delivery of microparticles of simvastatin in a viscosupplementary gel base showed enhanced bone regeneration as well as anti-inflammatory activity.