SECURITIES AND EXCHANGE COMMISSION
          Washington, DC  20549
                     
                     
              SCHEDULE  13G
                     
                     
Under the Securities Exchange Act of 1934
          (Amendment No.     )*
                     
                     
            Liposome Co., Inc.
- ------------------------------------------------------------(Name of Issuer)
                     
                     
               Common Stock
- -------------------------------------------------------------------------
      (Title of Class of Securities)
                     
                     
                536310105 
- ---------------------------------------------------------------(CUSIP Number)


Check the following box if a fee is being paid with this statement
[ x ].  (A fee is not required only if the filing person: (1) has a
previous statement on file reporting beneficial ownership of more
than five percent of the class of securities described in Item 1; and
(2) has filed no amendment subsequent thereto reporting beneficial
ownership of five percent or less of such class.) (See Rule 13d-7.)

*The remainder of this cover page shall be filled out for a
reporting person's initial filing on this form with respect to the
subject class of securities, and for any subsequent amendment
containing information which would alter the disclosures provided
in a prior cover page.

The information required in the remainder of this cover page shall
not be deemed to be "filed" for the purpose of Section 18 of the
Securities Exchange Act of 1934 ("Act") or otherwise subject to
the liabilities of that section of the Act but shall be subject to all
other provisions of the Act (however, see the Notes).

     (Continued on following page(s))
                     
            Page 1 of  5 Pages
                     
                     
  Schedule 13G CUSIP No.    536310105                     Page 2 of  5 Pages
- -------------------------------1.  Name of Reporting Person and SS or IRS
                                             Identification No. of Person

          Fred Alger Management, Inc.   13-2510833
          Fred M. Alger III             ###-##-####
- ----------------------------------------------------------------------------
2.   Check the Appropriate Box if a Member of a Group*            
                   (a)   [ x ]                                  (b)   [    ]
- ---------------------------------------------------------3.  SEC USE ONLY

- -----------------------------------------------------------------------------
4.   Citzenship or Place of Organization

                    New York, New York
- --------------------------------------------         5.   Sole Voting Power
          
                    17,200
- --------------------------------------Shares        6.   Shared Voting Power
Beneficially   
Owned by               1,371,800
Each      ---------------------------------------------------------------
Reporting 7.   Sole Dispositive Power
Person         
With                    1,529,000
- ------------------------------------------------------------------------------
          8.   Shared Dispositive Power

                    -0-
- -----------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each
     Reporting Person

                          1,539,000
- ---------------------------10. Check Box if the Aggregate Amount in Row (9)
                                                 Excludes Certain Shares*

- ---------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!   Schedule 13G        Page 3 of 5 Pages

11.  Percent of Class Represented by Amount in Row 9

                    5.2
- ------------------------------------------------------------------------------
12.  Type of Reporting Person*

          Fred Alger Management, Inc.        IA
          Fred M. Alger III                  IN
- -----------------------------------------------------------------------------
Item 1(a).     Name of Issuer:

          Liposome Co., Inc.

Item 1(b).     Address of Issuer's Principal Executive Offices:
     
          One Research Way
          Princeton, NJ 08540

Item 2(a).     Name of Person Filing:

          1.   Fred Alger Management, Inc.
          2.   Fred M. Alger III

Item 2(b).     Address of Principal Business Office, or if none,
Residence:

          1.   75 Maiden Lane, New York, NY  10038
          2.   75 Maiden Lane, New York, NY  10038


Item 2(c).     Citizenship:

          1.   New York
          2.   New York

Item 2(d).     Title of Class of Securities:

          Common Stock

Item 2(e).     CUSIP Number:

          536310105

Item 3.   The person filing is a:

          Group, in accordance with Rule 240.13d-1(b)(1)(ii)(H)

     *SEE INSTRUCTION BEFORE FILLING OUT!

                                    Schedule 13G
                              Page 4 of  5  Pages
- ----------------------------------Item 4(a).    Amount Beneficially Owned:

               1,539,000 shs.
   
Item 4(b).     Percent of Class:

                     5.2


Item 4(c).     Number of Shares as to Which Such Person has:

          (i)  sole power to vote or to direct the vote

                     17,200

          (ii) shared power to vote or to direct the vote 

                 1,371,800

          (iii)     sole power to dispose or to direct the
                    disposition of

                 1,529,000

          (iv) shared power to dispose or to direct the
               disposition of

                       -0-


Item 5.   Ownership of Five Percent or Less of a Class.

     If this statement is being filed to report the fact that as of
     the date hereof the reporting person has ceased to be the
     beneficial owner of more than five percent of the class of
     securities check the following [   ].

Item 6.   Ownership of More Than Five Percent on
          Behalf of Another Person.

                         n/a

Item 7.   Identification and Classification of the
          Subsidiary Which Acquired the Securities
          Being Reported on by the Parent Holding
          Company.

                         n/a


               Schedule 13G
                                        
                         Page 5 of  5  Pages
- -----------------------------------------------------------------------------
Item 8.   Identification and Classification of Members of
          the Group:

          Fred Alger Management, Inc.        IA
          Fred M. Alger III                  IN



Item 9.   Notice of Dissolution of Group.





Item 10.  Certification.

          By signing below I certify that, to the best of my
     knowledge and belief, the securities referred to above were
     acquired in the ordinary course of business and were not
     acquired for  the purpose of and do not have the effect of
     changing or influencing the control of the issuer of such
     securities and were not acquired in connection with or as
     a participant in any transaction having such purposes or
     effect.

          After reasonable inquiry and to the best of my
     knowledge and belief, I certify that the information set
     forth in this statement is true, complete and correct.



                                      _____________________________________
          Signature

          Gregory S. Duch
          Executive Vice President
          _____________________________________
          Name and Title
                                                  
                                   _____________________________________
          Date