Liposome Technology Inc. (LTI) announced Tuesday that it hasbegun two Phase II human clinical trials of Doxil in patientswith non-small cell lung cancer. Doxil will be intravenouslyadministered to two patient populations: those who havereceived prior chemotherapy and those who have received noprior therapy.

Doxil is LTI's proprietary long-circulating Stealth liposomeformulation of the widely prescribed anti-cancer compounddoxorubicin hydrochloride.

LTI (NASDAQ:LTIZ) of Menlo Park, Calif., said Doxil is able todeliver more of a drug to a disease site than a free version ofthe drug, and it appears to have a safety profile similar to thatof the unencapsulated drug.

The company is also conducting Phase III trials of Doxil in AIDSpatients with Kaposi's sarcoma, which afflicts approximately20,000 AIDS patients in the U.S. each year.

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