** Sage Therapeutics' shares fall 5.5% to $6.87 in morning trade

** Co says it will lay off more than 165 employees, including more than half of its R&D team, as part of reorganization plan

** To prioritize launch of postpartum depression pill Zurzuvae, which has been jointly developed with Biogen , and early-stage experimental drugs

** Last week, co said it would stop developing its experimental drug dalzanemdor, for Alzheimer's disease after it failed to meet main goal in late-stage trial

** Avg recommendation of 19 brokerages is a "hold;" median PT is $10 - LSEG

** As of last close, stock had slumped 66.5% YTD vs 11% increase in Nasdaq Biotechnology index

(Reporting by Leroy Leo in Bengaluru)

((Leroy.Dsouza@thomsonreuters.com))