The present invention is a peptide compound which stimulates the formation of hard tissues such as bone and cartilage. The invention is also related to a method to treat a defect in hard tissues such as bone and cartilage using the peptide. The method of the present invention may be used to treat or prevent the defects in bones and cartilages which are caused by rheumatoid arthritis or osteoarthritis which involves the regeneration of new bone or cartilage in or around the defects.
