This invention relates to a novel herbal composition comprising an extract of flowering and fruiting heads of the 
plant, Sphaeranthus indicus. The said extract of Sphaeranthus indicus contains a compound, 3a-hydroxy-5a,9-dimethyl-3-
methylene-3a,4,5,5a,6,7,8,9b-octahydro-3H-naphtho[1,2-b]
furan-2-one (7-Hydroxy-4,11(13)-eudesmadien-12,6-olide) (compound 1), as a bioactive marker. The invention also relates to a composition comprising 3a-hydroxy-5a,9-dimethyl-3-
methylene-3a,4,5,5a,6,7,8,9b-octahydro-3H-naphtho[1,2-b]
furan-2-one (compound 1) as an 
active ingredient. The invention also relates to methods of manufacture of the said compositions. The invention also relates to methods of administration of the said compositions to a subject in need of treatment for an 
inflammatory disorder. The invention also relates to 
tumor necrosis factor- (TNF-α) and 
interleukin (IL-1, IL-6, IL-8) inhibitory activity of the said compositions. The invention relates to inhibition of the expression of 
intercellular adhesion molecule 1 (ICAM-1), vascular-
cell adhesion molecule 1 (VCAM-1), and E-
Selectin by the said compositions. The said compositions may optionally contain at least one anti-inflammatory agent or can be used in combination with at least one anti-inflammatory agent.