The use of fibroblast growth factor (FGF)-18 protein, certain of its downstream target genes and respective expressed proteins, in particular sonic hedgehog (Shh), Shh protein, β-catenin, β-catenin protein, and the Wnt family of proteins that stimulate β-catenin, and the respective nucleotide sequences encoding this protein, particularly for inducing cartilage formation, particularly for the purpose of generating, repairing, reconstructing, or de novo formation of, cartilaginous tissue. Therapies for which FGF-18 and the target proteins are useful include repair and reconstruction of various tissues in conducting airways such as the trachea, bronchi, lung and larynx caused by, for example, tracheal-bronchial abnormalities, tracheal-laryngo or bronchial malaria. Other therapies for which FGF-18 and the target proteins would be useful include other cartilaginous tissues, such as those of joint and skeletal tissue caused by, for example, arthritis and meniscus abnormalities in joints.