OBJECTIVE： To discuss the causes and related treatment strategies of artificially high drug prices. METHODS： The causes of artificially high drug prices were analyzed from drug price formation， distribution and trading， drug use in medical institutions and other aspects， in order to sort out the overall plan and treatment strategies of artificially high drug prices. RESULTS & CONCLUSIONS： Artificially high drug prices are resulted from not sound pricing mechanism， numerous circulation links， imperfect procurement system， “drug maintaining medicine” mechanism of medical institutions and other factors. It is suggested to solve artificially high drug prices from perfecting drug market price formation mechanism， promoting circulation reform， improving centralized purchasing trading mechanism； at the same time， accelerating the reform of medicare payment system， deepening the reform of public medical institutions operating mechanism and perfecting supervision laws and regulations so as to gradually improve the drug price administration system and realize reasonable drug pricing.