The present invention provides a method for inhibiting activity of TGF-&bgr;, comprising contacting tissue expressing TGF-&bgr; with an amount of ebaf or an ebaf analogue. The present invention further provides a method for treating a condition associated with overactivity of TGF-&bgr;, particularly fibrosis, a defect in cell proliferation, or a coagulation defect. The present invention also provides a method for inhibiting activity of TGF-&bgr;, comprising contacting tissue expressing TGF-&bgr; with a modulator of ebaf expression, or a modulator of expression of an ebaf analogue. The present invention is further directed to a method for treating fibrosis in a subject in need of treatment, comprising administering to the subject an amount of ebaf or an ebaf analogue effective to treat the fibrosis. Finally, the present invention provides a method for treating a defect in cell proliferation in a subject in need of treatment, comprising administering to the subject an amount of ebaf or an ebaf analogue effective to treat the defect in cell proliferation.