* Valneva shares slip by around 1%

* Valneva: no impact on its 2022 guidance from U.S. decision

* Valneva: U.S. interested in talks over new contract for 2023

PARIS, Aug 18 (Reuters) - The U.S. Department of Defense (DoD) has ended an encephalitis vaccine supply contract with Valneva, said the French drugmaker, adding that a slowdown in global travel activity, mainly affecting Asia, had led to lower demand.

The development, which Valneva said had no impact on this year's financial guidance, dragged down the company's shares in early session trading by around 1%.

Valneva’s Japanese encephalitis vaccine Ixiaro is indicated for active immunization for the prevention of the disease for people who travel to, or live in, endemic areas.

"The DoD has communicated an interest in negotiating a new supply contract in 2023, once inventory returns to standard levels," Valneva said, adding that the total minimum value of the existing supply contract was approximately $118 million. (Reporting by Tassilo Hummel; Editing by Sudip Kar-Gupta)