Abstract: A method of inducing the proliferation and/or differentiation of human fetal pancreatic cells entails contacting such cells in primary culture with Hepatocyte Growth Factor/Scatter Factor, thereby inducing a proliferation of .beta.-epithelial cells, an increase in the number of .beta.-epithelial cells which form islet-like cell clusters, and an increase in insulin production per cell. The method provides increased numbers of functional islet-like cell clusters for transplantation, for example, into Type 1 diabetic patients. The method can be scaled up so as to provide clinically useful numbers of cells for transplantation.