Anthracycline antibiotics with significant antitumor activity are widely used for treatment of various oncologic diseases in spite of their poor pharmacokinetics and severe side-effects. To improve the efficacy of treatment of oncologic patients, liposomal formulations of the anthracycline antibiotics, such as Doxil, TLC D-99, and DaunoXome, have been developed. Pharmacokinetic parameters of liposomal doxorubicin and daunorubicin differ markedly from the parameters of their free formulations. Liposomal anthracyclines display a prolonged circulation time, reduced clearance, smaller volume of distribution, and lower toxicity. Doxil and DaunoXome have been licensed for treatment of AIDS-related Kaposi's sarcoma. Entrapment of anthracycline antibiotics into liposomes coupled with monoclonal antibodies enhances their uptake by tumor cells.