Liposome Technology Inc. said Thursday that it has filed for anoffering of 2 million shares of common stock.

The Menlo Park, Calif., company (NASDAQ:LTIZ) has Amphocil,a lipid-complexed amphotericin B for fungal infections, inPhase II trials. The company's liposomal albuterol anti-asthmatic is in Phase II trials. Doxil, a Stealth liposomedoxorubicin for solid tumors is in Phase I/II trials in AIDSpatients with Kaposi's sarcoma.

If the offering is completed, LTIZ will have 18.2 million sharesoutstanding. Underwriters Oppenheimer & Co. Inc. and Kidder,Peabody & Co. Inc. have a 300,000-share overallotment option.

The stock was down $1 to $18.75 on Thursday.

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