The invention provides formulations and methods for mediating inflammation, in particular an inflammatory bowel disorder such as necrotizing enterocolitis, and for. Further, the formulations are effective in lowering blood cholesterol and decreasing blood cholesterol absorption. The formulations comprise at least one ganglioside, which may be selected from the group consisting of: GD3, GM1, GM2, GM3, and GD1b. The invention provides a method of treating or preventing inflammatory diseases, such as necrotizing enterocolitis by delivery of at least one ganglioside to a subject in need thereof. Supplementation of foods or liquids with gangliosides, fore example infant formula or infant foods, can be employed according to the invention.