Using bone samples from people undergoing hip replacement surgery, the researchers were able to show that the drug - a protein that activates a molecular pathway called the 'Wnt' pathway - causes stem cells found within bones to divide and to turn into more bone cells.
The Wnt pathway is found throughout the animal kingdom - from sponges to humans - and it plays a fundamental role in animal development and disease.
If these animals lose a leg, they can just regrow a new one, researchers said.
"Bone fractures are a big problem in society, especially in older people. It is getting worse as more people get older and their risk of fracture increases," said Dr Nick Evans, Associate Professor in Bioengineering at the University of Southampton and lead author of the study.
Also Read
"Most fractures heal completely by themselves, but a surprising number, around 10 per cent, take over six months to heal, or never heal at all. In the worst cases this can lead to several surgical operations, or even amputation," said Evans.
"This may help us find cures for many diseases, including bone disease, and speed up bone healing after fracture," said Evans.
However the researchers found that if the Wnt pathway was switched on too long, the regenerative effect was lost or, even reversed.
The research was published in the journal Stem Cells.