Abstract: The present invention provides compositions of liposomes that contain a biologically active compound and methods of manufacture thereof. Invention methods offer the ability to manufacture liposome compositions containing NSAIDs and other biologically active compounds, and the ability to attain very high encapsulation efficiencies in uniform, stable liposomes. Compositions of liposomes containing anti-viral agents and anti-fungal agents are also provided. Invention liposome compositions are useful for the treatment of a variety of conditions, including, for example, pain and inflammation, bacterial infections and viral infections.