Medidata IPO prices for $14/share

* Medidata IPO prices above range and raises $88.2 million

* IPO is tenth of year in United

By Phil Wahba

NEW YORK, June 24 (Reuters) - Medidata Solutions Inc (MDSO.O) shares priced for $14 in its initial public offering, above their original estimate range, a source with direct knowledge of the deal said on Wednesday.

Medidata, a New York-based provider of software for drug companies and contract research organizations, sold 6.3 million shares, raising $88.2 million, said the source, who was not authorized to speak publicly about the IPO.

It was the tenth IPO on a U.S. exchange so far in 2009 and the third IPO this week, the busiest for U.S.-listed IPOs since April 2008. The IPO followed the market debuts of two Chinese companies, water treatment equipment supplier Duoyuan Global Water Inc (DGW.N) and specialty chemicals maker Chemspec International Ltd (CPC.N).

Medidata, whose clients include Johnson & Johnson (JNJ.N), proved an easy sell because of its record of growth and client retention, one analyst said. The shares had been expected to price between $11 and $13 each.

"They have had an unbroken string of quarterly revenue growth and they are automating a paper process for clinical trials, saving their clients money," said Francis Gaskins, president of analytics firm IPO Desktop.

Despite its track record of growth, Medidata has had trouble eking out profits, potentially limiting the stock's appeal in Medidata's trading debut Thursday, Gaskins said, adding that he didn't expect the stock to "skyrocket."

Gaskins also said that Duoyuan's performance in its debut -- its shares shot up 36.7 percent in their debut-- benefited Medidata by increasing investors' confidence level in IPOs.

Medidata is the third software company to go public in the United States this year, following language training software maker Rosetta Stone Inc (RST.N) and network software provider SolarWinds Inc (SWI.N).

The company said it would use the IPO proceeds to pay down some of its debt and for possible acquisitions.

The IPO's underwriters, led by Citigroup Inc (C.N) and Credit Suisse Group AG (CSGN.VX), have the option to buy up to another 945,000 shares to cover overallotments.

Medidata shares are set to begin trading on the Nasdaq Thursday under the symbol "MDSO." (Reporting by Phil Wahba; Editing by Andre Grenon, Steve Orlofsky and Bernard Orr)