An osteogenic composition for implantation at or near a target tissue site beneath the skin is provided, the osteogenic composition comprising bone morphogenetic protein and a NEMO binding domain peptide, where the NEMO binding domain peptide reduces soft tissue inflammation at or near the target tissue site. In some embodiments, a method is provided for treating a target tissue site in a patient in need of such treatment, the method comprising implanting an osteogenic composition comprising bone morphogenetic protein and a NEMO binding domain peptide, where the NEMO binding domain peptide reduces soft tissue inflammation at or near the target tissue site.