Liposomes containing lipophilic active ingredient are produced by dehydrating a mixture of liposomes, lipophilic active ingredient and sugar, usually followed by a rehydration step to form dehydration-rehydration vesicles. The lipophilic drug is suitably paclitaxel. The sugar is usually sucrose. The liposome forming compounds preferably include cholesterol and phosphatidylcholine, and optionally an anionic lipid. The ratio of sugar:lipid is preferably at least 5:1 w/w. The ratio of lipid:drug is preferably (up to 10):1 w/w.